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Arista Networks (ANET) Stock Sinks As Market Gains: Here's Why
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Arista Networks (ANET - Free Report) closed the latest trading day at $294.75, indicating a -0.88% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.15%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.32%.
Heading into today, shares of the cloud networking company had gained 9.73% over the past month, outpacing the Computer and Technology sector's gain of 1.32% and the S&P 500's gain of 1.65% in that time.
The investment community will be paying close attention to the earnings performance of Arista Networks in its upcoming release. In that report, analysts expect Arista Networks to post earnings of $1.71 per share. This would mark year-over-year growth of 19.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.54 billion, up 14.19% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.41 per share and a revenue of $6.54 billion, indicating changes of +6.77% and +11.55%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Arista Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Arista Networks is currently a Zacks Rank #2 (Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 40.15. For comparison, its industry has an average Forward P/E of 18.6, which means Arista Networks is trading at a premium to the group.
Also, we should mention that ANET has a PEG ratio of 2.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Communication - Components industry had an average PEG ratio of 1.5 as trading concluded yesterday.
The Communication - Components industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Arista Networks (ANET) Stock Sinks As Market Gains: Here's Why
Arista Networks (ANET - Free Report) closed the latest trading day at $294.75, indicating a -0.88% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.15%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.32%.
Heading into today, shares of the cloud networking company had gained 9.73% over the past month, outpacing the Computer and Technology sector's gain of 1.32% and the S&P 500's gain of 1.65% in that time.
The investment community will be paying close attention to the earnings performance of Arista Networks in its upcoming release. In that report, analysts expect Arista Networks to post earnings of $1.71 per share. This would mark year-over-year growth of 19.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.54 billion, up 14.19% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.41 per share and a revenue of $6.54 billion, indicating changes of +6.77% and +11.55%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Arista Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Arista Networks is currently a Zacks Rank #2 (Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 40.15. For comparison, its industry has an average Forward P/E of 18.6, which means Arista Networks is trading at a premium to the group.
Also, we should mention that ANET has a PEG ratio of 2.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Communication - Components industry had an average PEG ratio of 1.5 as trading concluded yesterday.
The Communication - Components industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.