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Arista Networks (ANET) Registers a Bigger Fall Than the Market: Important Facts to Note
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Arista Networks (ANET - Free Report) ended the recent trading session at $162.20, demonstrating a -7.08% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.44% for the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 2.22%.
Prior to today's trading, shares of the cloud networking company had gained 13.33% outpaced the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
Investors will be eagerly watching for the performance of Arista Networks in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.89, indicating a 21.92% growth compared to the equivalent quarter last 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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Arista Networks boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 48.04. For comparison, its industry has an average Forward P/E of 18, which means Arista Networks is trading at a premium to the group.
Investors should also note that ANET has a PEG ratio of 2.42 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 0.96.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Arista Networks (ANET) Registers a Bigger Fall Than the Market: Important Facts to Note
Arista Networks (ANET - Free Report) ended the recent trading session at $162.20, demonstrating a -7.08% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.44% for the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 2.22%.
Prior to today's trading, shares of the cloud networking company had gained 13.33% outpaced the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
Investors will be eagerly watching for the performance of Arista Networks in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.89, indicating a 21.92% growth compared to the equivalent quarter last 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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Arista Networks boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 48.04. For comparison, its industry has an average Forward P/E of 18, which means Arista Networks is trading at a premium to the group.
Investors should also note that ANET has a PEG ratio of 2.42 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 0.96.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.