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Why the Market Dipped But Arista Networks (ANET) Gained Today
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Arista Networks (ANET - Free Report) closed the most recent trading day at $192.35, moving +2.42% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.78%.
Heading into today, shares of the cloud networking company had lost 6.93% over the past month, lagging the Computer and Technology sector's loss of 1.27% and the S&P 500's loss of 1.99%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.06, marking a 41.33% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.31 billion, reflecting a 43.57% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.04 per share and a revenue of $12.53 billion, representing changes of +35.57% and +39.1%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Arista Networks is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 46.48 right now. For comparison, its industry has an average Forward P/E of 20.2, which means Arista Networks is trading at a premium to the group.
Investors should also note that ANET has a PEG ratio of 2.04 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.16.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Why the Market Dipped But Arista Networks (ANET) Gained Today
Arista Networks (ANET - Free Report) closed the most recent trading day at $192.35, moving +2.42% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.78%.
Heading into today, shares of the cloud networking company had lost 6.93% over the past month, lagging the Computer and Technology sector's loss of 1.27% and the S&P 500's loss of 1.99%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.06, marking a 41.33% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.31 billion, reflecting a 43.57% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.04 per share and a revenue of $12.53 billion, representing changes of +35.57% and +39.1%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Arista Networks is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 46.48 right now. For comparison, its industry has an average Forward P/E of 20.2, which means Arista Networks is trading at a premium to the group.
Investors should also note that ANET has a PEG ratio of 2.04 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.16.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.