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Arista Networks (ANET) Ascends While Market Falls: Some Facts to Note
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In the latest close session, Arista Networks (ANET - Free Report) was up +1.6% at $166.85. The stock outperformed the S&P 500, which registered a daily loss of 0.24%. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq depreciated by 0.26%.
Shares of the cloud networking company witnessed a gain of 25.16% over the previous month, beating the performance of the Computer and Technology sector with its gain of 9.41%, and the S&P 500's gain of 6.42%.
The upcoming earnings release of Arista Networks will be of great interest to investors. The company's earnings report is expected on May 5, 2026. 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. In the meantime, our current consensus estimate forecasts the revenue to be $2.61 billion, indicating a 30.13% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.54 per share and a revenue of $11.26 billion, demonstrating changes of +18.79% and +25.04%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.77% rise in the Zacks Consensus EPS estimate. Arista Networks currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 46.37. This represents a premium compared to its industry average Forward P/E of 19.18.
We can also see that ANET currently has a PEG ratio of 2.58. 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. The average PEG ratio for the Internet - Software industry stood at 1.1 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 39% of over 250 industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Arista Networks (ANET) Ascends While Market Falls: Some Facts to Note
In the latest close session, Arista Networks (ANET - Free Report) was up +1.6% at $166.85. The stock outperformed the S&P 500, which registered a daily loss of 0.24%. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq depreciated by 0.26%.
Shares of the cloud networking company witnessed a gain of 25.16% over the previous month, beating the performance of the Computer and Technology sector with its gain of 9.41%, and the S&P 500's gain of 6.42%.
The upcoming earnings release of Arista Networks will be of great interest to investors. The company's earnings report is expected on May 5, 2026. 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. In the meantime, our current consensus estimate forecasts the revenue to be $2.61 billion, indicating a 30.13% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.54 per share and a revenue of $11.26 billion, demonstrating changes of +18.79% and +25.04%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.77% rise in the Zacks Consensus EPS estimate. Arista Networks currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 46.37. This represents a premium compared to its industry average Forward P/E of 19.18.
We can also see that ANET currently has a PEG ratio of 2.58. 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. The average PEG ratio for the Internet - Software industry stood at 1.1 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 39% of over 250 industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.