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Arista Networks (ANET) Gains But Lags Market: What You Should Know
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Arista Networks (ANET - Free Report) closed the most recent trading day at $160.17, moving +0.39% from the previous trading session. This change lagged the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 9.29%.
Coming into today, shares of the cloud networking company had lost 6.15% in the past month. In that same time, the Computer and Technology sector gained 1.84%, while the S&P 500 gained 2.65%.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. This is expected to be July 31, 2023. In that report, analysts expect Arista Networks to post earnings of $1.44 per share. This would mark year-over-year growth of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $1.38 billion, up 31.07% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $5.53 billion. These results would represent year-over-year changes of +28.17% and +26.31%, respectively.
It is also important to note the recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Arista Networks currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 27.18. This valuation marks a premium compared to its industry's average Forward P/E of 21.14.
Investors should also note that ANET has a PEG ratio of 1.81 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ANET's industry had an average PEG ratio of 2.34 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Arista Networks (ANET) Gains But Lags Market: What You Should Know
Arista Networks (ANET - Free Report) closed the most recent trading day at $160.17, moving +0.39% from the previous trading session. This change lagged the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 9.29%.
Coming into today, shares of the cloud networking company had lost 6.15% in the past month. In that same time, the Computer and Technology sector gained 1.84%, while the S&P 500 gained 2.65%.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. This is expected to be July 31, 2023. In that report, analysts expect Arista Networks to post earnings of $1.44 per share. This would mark year-over-year growth of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $1.38 billion, up 31.07% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $5.53 billion. These results would represent year-over-year changes of +28.17% and +26.31%, respectively.
It is also important to note the recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Arista Networks currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 27.18. This valuation marks a premium compared to its industry's average Forward P/E of 21.14.
Investors should also note that ANET has a PEG ratio of 1.81 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ANET's industry had an average PEG ratio of 2.34 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.