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Why Arista Networks (ANET) Dipped More Than Broader Market Today
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In the latest close session, Arista Networks (ANET - Free Report) was down 3.74% at $130.80. The stock's performance was behind the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq lost 0.84%.
Shares of the cloud networking company witnessed a gain of 6.63% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.83%, and the S&P 500's loss of 3.7%.
Investors will be eagerly watching for the performance of Arista Networks in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.81, showcasing a 24.62% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.61 billion, reflecting a 30.13% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.52 per share and a revenue of $11.26 billion, signifying shifts of +18.12% and +24.98%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Arista Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.17% rise in the Zacks Consensus EPS estimate. As of now, Arista Networks holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 38.61. This indicates a premium in contrast to its industry's Forward P/E of 19.39.
One should further note that ANET currently holds a PEG ratio of 2.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.09.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% 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.
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Why Arista Networks (ANET) Dipped More Than Broader Market Today
In the latest close session, Arista Networks (ANET - Free Report) was down 3.74% at $130.80. The stock's performance was behind the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq lost 0.84%.
Shares of the cloud networking company witnessed a gain of 6.63% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.83%, and the S&P 500's loss of 3.7%.
Investors will be eagerly watching for the performance of Arista Networks in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.81, showcasing a 24.62% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.61 billion, reflecting a 30.13% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.52 per share and a revenue of $11.26 billion, signifying shifts of +18.12% and +24.98%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Arista Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.17% rise in the Zacks Consensus EPS estimate. As of now, Arista Networks holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 38.61. This indicates a premium in contrast to its industry's Forward P/E of 19.39.
One should further note that ANET currently holds a PEG ratio of 2.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.09.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% 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.