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Why the Market Dipped But Arista Networks (ANET) Gained Today
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In the latest close session, Arista Networks (ANET - Free Report) was up +2.25% at $136.07. The stock outperformed the S&P 500, which registered a daily loss of 1.36%. At the same time, the Dow lost 1.64%, and the tech-heavy Nasdaq lost 1.46%.
Shares of the cloud networking company have depreciated by 6.67% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.24%, and the S&P 500's loss of 1.76%.
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 $0.81, indicating a 24.62% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.61 billion, indicating a 30.13% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.52 per share and revenue of $11.26 billion. These totals would mark changes of +18.12% and +24.98%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Arista Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.46% rise in the Zacks Consensus EPS estimate. Arista Networks is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 37.81. This signifies a premium in comparison to the average Forward P/E of 19.46 for its industry.
It is also worth noting that ANET currently has a PEG ratio of 2.11. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 1.1 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 142, placing it within the bottom 43% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why the Market Dipped But Arista Networks (ANET) Gained Today
In the latest close session, Arista Networks (ANET - Free Report) was up +2.25% at $136.07. The stock outperformed the S&P 500, which registered a daily loss of 1.36%. At the same time, the Dow lost 1.64%, and the tech-heavy Nasdaq lost 1.46%.
Shares of the cloud networking company have depreciated by 6.67% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.24%, and the S&P 500's loss of 1.76%.
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 $0.81, indicating a 24.62% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.61 billion, indicating a 30.13% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.52 per share and revenue of $11.26 billion. These totals would mark changes of +18.12% and +24.98%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Arista Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.46% rise in the Zacks Consensus EPS estimate. Arista Networks is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 37.81. This signifies a premium in comparison to the average Forward P/E of 19.46 for its industry.
It is also worth noting that ANET currently has a PEG ratio of 2.11. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 1.1 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 142, placing it within the bottom 43% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.