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Arista Networks (ANET) Stock Declines While Market Improves: Some Information for Investors

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In the latest trading session, Arista Networks (ANET - Free Report) closed at $236.70, marking a -0.88% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.59%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.66%.

The the stock of cloud networking company has risen by 10.9% in the past month, leading the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16%.

The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.70, reflecting a 20.57% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.53 billion, indicating a 19.93% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.55 per share and a revenue of $5.85 billion, signifying shifts of +43.01% and +33.51%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Arista Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Arista Networks holds a Zacks Rank of #2 (Buy).

Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 36.47. This indicates a premium in contrast to its industry's Forward P/E of 18.29.

One should further note that ANET currently holds a PEG ratio of 1.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Communication - Components industry currently had an average PEG ratio of 1.84 as of yesterday's close.

The Communication - Components industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 170, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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