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Why Arista Networks (ANET) Dipped More Than Broader Market Today
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Arista Networks (ANET - Free Report) closed at $166.46 in the latest trading session, marking a -3.94% move from the prior day. This change lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
The cloud networking company's shares have seen an increase of 10.79% over the last month, surpassing the Computer and Technology sector's gain of 0.38% and the S&P 500's gain of 2.14%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. In that report, analysts expect Arista Networks to post earnings of $0.89 per share. This would mark year-over-year growth of 21.92%. At the same time, our most recent consensus estimate is projecting a revenue of $2.82 billion, reflecting a 27.95% rise from the equivalent quarter last year.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $3.63 per share and revenue of $11.57 billion. These results would represent year-over-year changes of +21.81% and +28.46%, respectively.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Arista Networks holds a Zacks Rank of #3 (Hold).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 47.69. Its industry sports an average Forward P/E of 19.77, so one might conclude that Arista Networks is trading at a premium comparatively.
Also, we should mention that ANET has a PEG ratio of 2.4. 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 1.09 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Why Arista Networks (ANET) Dipped More Than Broader Market Today
Arista Networks (ANET - Free Report) closed at $166.46 in the latest trading session, marking a -3.94% move from the prior day. This change lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
The cloud networking company's shares have seen an increase of 10.79% over the last month, surpassing the Computer and Technology sector's gain of 0.38% and the S&P 500's gain of 2.14%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. In that report, analysts expect Arista Networks to post earnings of $0.89 per share. This would mark year-over-year growth of 21.92%. At the same time, our most recent consensus estimate is projecting a revenue of $2.82 billion, reflecting a 27.95% rise from the equivalent quarter last year.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $3.63 per share and revenue of $11.57 billion. These results would represent year-over-year changes of +21.81% and +28.46%, respectively.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Arista Networks holds a Zacks Rank of #3 (Hold).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 47.69. Its industry sports an average Forward P/E of 19.77, so one might conclude that Arista Networks is trading at a premium comparatively.
Also, we should mention that ANET has a PEG ratio of 2.4. 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 1.09 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.