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Arista Networks (ANET) Surpasses Market Returns: Some Facts Worth Knowing
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Arista Networks (ANET - Free Report) closed the most recent trading day at $205.00, moving +2.81% from the previous trading session. This change outpaced the S&P 500's 1.49% gain on the day. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 2.26%.
The cloud networking company's shares have seen an increase of 5.69% over the last month, surpassing the Computer and Technology sector's gain of 2.97% and the S&P 500's gain of 0.1%.
Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company's upcoming EPS is projected at $1.06, signifying a 41.33% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.31 billion, indicating a 43.57% increase compared to the same quarter of the previous 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.
Investors should also pay attention to any latest changes in analyst estimates for Arista Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 has moved 0.07% higher. Arista Networks is currently sporting a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 49.35. This expresses a premium compared to the average Forward P/E of 20.21 of its industry.
Investors should also note that ANET has a PEG ratio of 2.17 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 36% of over 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.
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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Arista Networks (ANET) Surpasses Market Returns: Some Facts Worth Knowing
Arista Networks (ANET - Free Report) closed the most recent trading day at $205.00, moving +2.81% from the previous trading session. This change outpaced the S&P 500's 1.49% gain on the day. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 2.26%.
The cloud networking company's shares have seen an increase of 5.69% over the last month, surpassing the Computer and Technology sector's gain of 2.97% and the S&P 500's gain of 0.1%.
Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company's upcoming EPS is projected at $1.06, signifying a 41.33% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.31 billion, indicating a 43.57% increase compared to the same quarter of the previous 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.
Investors should also pay attention to any latest changes in analyst estimates for Arista Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 has moved 0.07% higher. Arista Networks is currently sporting a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 49.35. This expresses a premium compared to the average Forward P/E of 20.21 of its industry.
Investors should also note that ANET has a PEG ratio of 2.17 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 36% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.