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Arista Networks (ANET) Declines More Than Market: Some Information for Investors
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In the latest trading session, Arista Networks (ANET - Free Report) closed at $134.03, marking a -3.04% move from the previous day. This change lagged the S&P 500's daily loss of 1.52%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 1.78%.
Shares of the cloud networking company have depreciated by 1.73% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.66%, and outperforming the S&P 500's loss of 2.25%.
The upcoming earnings release of Arista Networks will be of great interest to investors. The company is predicted to post an EPS of $0.81, indicating a 24.62% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.61 billion, up 30.13% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.51 per share and a revenue of $11.26 billion, indicating changes of +17.79% and +24.98%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arista Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, there's been a 6.32% rise in the Zacks Consensus EPS estimate. Arista Networks is currently a Zacks Rank #3 (Hold).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 39.34. For comparison, its industry has an average Forward P/E of 20.32, which means Arista Networks is trading at a premium to the group.
We can also see that ANET currently has a PEG ratio of 2.19. 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 1.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 149, this industry ranks in the bottom 40% 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.
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) Declines More Than Market: Some Information for Investors
In the latest trading session, Arista Networks (ANET - Free Report) closed at $134.03, marking a -3.04% move from the previous day. This change lagged the S&P 500's daily loss of 1.52%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 1.78%.
Shares of the cloud networking company have depreciated by 1.73% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.66%, and outperforming the S&P 500's loss of 2.25%.
The upcoming earnings release of Arista Networks will be of great interest to investors. The company is predicted to post an EPS of $0.81, indicating a 24.62% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.61 billion, up 30.13% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.51 per share and a revenue of $11.26 billion, indicating changes of +17.79% and +24.98%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arista Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, there's been a 6.32% rise in the Zacks Consensus EPS estimate. Arista Networks is currently a Zacks Rank #3 (Hold).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 39.34. For comparison, its industry has an average Forward P/E of 20.32, which means Arista Networks is trading at a premium to the group.
We can also see that ANET currently has a PEG ratio of 2.19. 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 1.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 149, this industry ranks in the bottom 40% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.