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Arista Networks (ANET) Surpasses Market Returns: Some Facts Worth Knowing

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Arista Networks (ANET - Free Report) closed at $146.73 in the latest trading session, marking a +2.09% move from the prior day. This move outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq added 0.91%.

Prior to today's trading, shares of the cloud networking company had gained 7.13% outpaced the Computer and Technology sector's gain of 0.49% and the S&P 500's gain of 0.38%.

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's earnings per share (EPS) are projected to be $0.75, reflecting a 15.38% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.37 billion, up 22.73% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.88 per share and a revenue of $8.87 billion, signifying shifts of +26.87% and 0%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Arista Networks boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 43.45. This denotes a premium relative to the industry average Forward P/E of 24.04.

We can also see that ANET currently has a PEG ratio of 2.16. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.42.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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