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Arista Networks (ANET) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest trading session, Arista Networks (ANET - Free Report) closed at $192.93, marking a -1.04% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.64%.
The cloud networking company's stock has dropped by 1.46% in the past month, falling short of the Computer and Technology sector's gain of 0.4% and the S&P 500's loss of 0.97%.
The investment community will be paying close attention to the earnings performance of Arista Networks in its upcoming release. On that day, Arista Networks is projected to report earnings of $1.06 per share, which would represent year-over-year growth of 41.33%. Simultaneously, our latest consensus estimate expects the revenue to be $3.31 billion, showing a 43.57% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.04 per share and revenue of $12.53 billion. These totals would mark changes of +35.57% and +39.1%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. At present, Arista Networks boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 48.25. This indicates a premium in contrast to its industry's Forward P/E of 20.07.
Investors should also note that ANET has a PEG ratio of 2.12 right now. 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 1.07.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Arista Networks (ANET) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest trading session, Arista Networks (ANET - Free Report) closed at $192.93, marking a -1.04% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.64%.
The cloud networking company's stock has dropped by 1.46% in the past month, falling short of the Computer and Technology sector's gain of 0.4% and the S&P 500's loss of 0.97%.
The investment community will be paying close attention to the earnings performance of Arista Networks in its upcoming release. On that day, Arista Networks is projected to report earnings of $1.06 per share, which would represent year-over-year growth of 41.33%. Simultaneously, our latest consensus estimate expects the revenue to be $3.31 billion, showing a 43.57% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.04 per share and revenue of $12.53 billion. These totals would mark changes of +35.57% and +39.1%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. At present, Arista Networks boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 48.25. This indicates a premium in contrast to its industry's Forward P/E of 20.07.
Investors should also note that ANET has a PEG ratio of 2.12 right now. 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 1.07.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.