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Arista Networks (ANET) Stock Dips While Market Gains: Key Facts
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Arista Networks (ANET - Free Report) closed the most recent trading day at $286.92, moving -0.83% from the previous trading session. This move lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.39%.
Shares of the cloud networking company have appreciated by 10.53% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.42% and the S&P 500's gain of 2.97%.
The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company's upcoming EPS is projected at $1.73, signifying a 20.98% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.54 billion, indicating a 14.19% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.46 per share and revenue of $6.54 billion, which would represent changes of +7.49% and +11.55%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Arista Networks. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.68% higher. As of now, Arista Networks holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 38.76. For comparison, its industry has an average Forward P/E of 18.56, which means Arista Networks is trading at a premium to the group.
Investors should also note that ANET has a PEG ratio of 2.22 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Communication - Components industry was having an average PEG ratio of 1.5.
The Communication - Components industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Arista Networks (ANET) Stock Dips While Market Gains: Key Facts
Arista Networks (ANET - Free Report) closed the most recent trading day at $286.92, moving -0.83% from the previous trading session. This move lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.39%.
Shares of the cloud networking company have appreciated by 10.53% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.42% and the S&P 500's gain of 2.97%.
The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company's upcoming EPS is projected at $1.73, signifying a 20.98% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.54 billion, indicating a 14.19% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.46 per share and revenue of $6.54 billion, which would represent changes of +7.49% and +11.55%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Arista Networks. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.68% higher. As of now, Arista Networks holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 38.76. For comparison, its industry has an average Forward P/E of 18.56, which means Arista Networks is trading at a premium to the group.
Investors should also note that ANET has a PEG ratio of 2.22 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Communication - Components industry was having an average PEG ratio of 1.5.
The Communication - Components industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.