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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 $164.93, marking a -1.83% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq lost 1.35%.
Shares of the cloud networking company witnessed a gain of 18.67% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.19%, and the S&P 500's gain of 1.56%.
The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company is forecasted to report an EPS of $0.89, showcasing a 21.92% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.82 billion, indicating a 27.95% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.63 per share and a revenue of $11.57 billion, representing changes of +21.81% and +28.46%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arista Networks. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. Arista Networks currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 46.24. This indicates a premium in contrast to its industry's Forward P/E of 18.64.
It is also worth noting that ANET currently has a PEG ratio of 2.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.03.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 36% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
View the Zacks #1 Rank List
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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 $164.93, marking a -1.83% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq lost 1.35%.
Shares of the cloud networking company witnessed a gain of 18.67% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.19%, and the S&P 500's gain of 1.56%.
The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company is forecasted to report an EPS of $0.89, showcasing a 21.92% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.82 billion, indicating a 27.95% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.63 per share and a revenue of $11.57 billion, representing changes of +21.81% and +28.46%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arista Networks. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. Arista Networks currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 46.24. This indicates a premium in contrast to its industry's Forward P/E of 18.64.
It is also worth noting that ANET currently has a PEG ratio of 2.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.03.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 36% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.