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Arista Networks (ANET) Registers a Bigger Fall Than the Market: Important Facts to Note
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Arista Networks (ANET - Free Report) closed at $132.44 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's 0.14% loss on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.24%.
Prior to today's trading, shares of the cloud networking company had gained 4.71% outpaced the Computer and Technology sector's gain of 0.2% and the S&P 500's gain of 0.94%.
Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company is forecasted to report an EPS of $0.75, showcasing a 15.38% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.37 billion, up 22.73% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $8.87 billion. These results would represent year-over-year changes of +26.87% and +26.67%, respectively.
Investors might also notice 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Arista Networks is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 46.58. This indicates a premium in contrast to its industry's Forward P/E of 28.78.
One should further note that ANET currently holds a PEG ratio of 2.32. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.85.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 26% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Arista Networks (ANET) Registers a Bigger Fall Than the Market: Important Facts to Note
Arista Networks (ANET - Free Report) closed at $132.44 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's 0.14% loss on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.24%.
Prior to today's trading, shares of the cloud networking company had gained 4.71% outpaced the Computer and Technology sector's gain of 0.2% and the S&P 500's gain of 0.94%.
Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company is forecasted to report an EPS of $0.75, showcasing a 15.38% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.37 billion, up 22.73% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $8.87 billion. These results would represent year-over-year changes of +26.87% and +26.67%, respectively.
Investors might also notice 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Arista Networks is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 46.58. This indicates a premium in contrast to its industry's Forward P/E of 28.78.
One should further note that ANET currently holds a PEG ratio of 2.32. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.85.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 26% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.