We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arista Networks (ANET) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Arista Networks (ANET - Free Report) closed at $137.19 in the latest trading session, marking a +2.69% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.64% for the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%.
Prior to today's trading, shares of the cloud networking company had gained 3.9% outpaced the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.
Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company is predicted to post an EPS of $0.75, indicating a 15.38% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.37 billion, indicating a 22.73% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.88 per share and a revenue of $8.87 billion, representing changes of +26.87% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. At present, Arista Networks boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 40.39. This represents a premium compared to its industry average Forward P/E of 24.2.
One should further note that ANET currently holds a PEG ratio of 2.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.54.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arista Networks (ANET) Outpaces Stock Market Gains: What You Should Know
Arista Networks (ANET - Free Report) closed at $137.19 in the latest trading session, marking a +2.69% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.64% for the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%.
Prior to today's trading, shares of the cloud networking company had gained 3.9% outpaced the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.
Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company is predicted to post an EPS of $0.75, indicating a 15.38% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.37 billion, indicating a 22.73% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.88 per share and a revenue of $8.87 billion, representing changes of +26.87% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. At present, Arista Networks boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 40.39. This represents a premium compared to its industry average Forward P/E of 24.2.
One should further note that ANET currently holds a PEG ratio of 2.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.54.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.