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Arista Networks (ANET) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest close session, Arista Networks (ANET - Free Report) was down 1.01% at $202.86. The stock's performance was behind the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Shares of the cloud networking company witnessed a gain of 4.72% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.58%, and the S&P 500's loss of 0.24%.
The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company is expected to report EPS of $1.08, up 44% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.31 billion, indicating a 43.51% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.04 per share and a revenue of $12.63 billion, signifying shifts of +35.57% and +40.3%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Arista Networks. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. At present, Arista Networks boasts a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Arista Networks is currently being traded at a Forward P/E ratio of 50.71. This represents a premium compared to its industry average Forward P/E of 19.04.
One should further note that ANET currently holds a PEG ratio of 2.23. 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. The Internet - Software industry currently had an average PEG ratio of 1.11 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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
In the latest close session, Arista Networks (ANET - Free Report) was down 1.01% at $202.86. The stock's performance was behind the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Shares of the cloud networking company witnessed a gain of 4.72% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.58%, and the S&P 500's loss of 0.24%.
The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company is expected to report EPS of $1.08, up 44% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.31 billion, indicating a 43.51% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.04 per share and a revenue of $12.63 billion, signifying shifts of +35.57% and +40.3%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Arista Networks. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. At present, Arista Networks boasts a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Arista Networks is currently being traded at a Forward P/E ratio of 50.71. This represents a premium compared to its industry average Forward P/E of 19.04.
One should further note that ANET currently holds a PEG ratio of 2.23. 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. The Internet - Software industry currently had an average PEG ratio of 1.11 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.