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Arista Networks (ANET) Stock Moves -1.78%: What You Should Know

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Arista Networks (ANET - Free Report) ended the recent trading session at $127.52, demonstrating a -1.78% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 2.06%. Elsewhere, the Dow lost 1.76%, while the tech-heavy Nasdaq lost 2.39%.

Heading into today, shares of the cloud networking company had lost 0.69% over the past month, lagging the Computer and Technology sector's gain of 1.71% and the S&P 500's gain of 1.63%.

Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. The company's earnings report is set to go public on February 12, 2026. 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.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.88 per share and revenue of $8.87 billion, indicating changes of +26.87% and 0%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained unchanged. Currently, Arista Networks is carrying a Zacks Rank of #2 (Buy).

From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 39.25. This expresses a premium compared to the average Forward P/E of 23.4 of its industry.

It is also worth noting that ANET currently has a PEG ratio of 1.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ANET's industry had an average PEG ratio of 1.41 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 32% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ANET in the coming trading sessions, be sure to utilize Zacks.com.


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