In the latest trading session, Arista Networks (ANET - Free Report) closed at $205.76, marking a +0.45% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.12%. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.08%.
Prior to today's trading, shares of the cloud networking company had lost 13.32% over the past month. This has lagged the Computer and Technology sector's loss of 4.42% and the S&P 500's loss of 6.96% in that time.
Wall Street will be looking for positivity from ANET as it approaches its next earnings report date. This is expected to be February 21, 2019. On that day, ANET is projected to report earnings of $2.04 per share, which would represent year-over-year growth of 19.3%. Our most recent consensus estimate is calling for quarterly revenue of $589.69 million, up 26.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.73 per share and revenue of $2.14 billion. These totals would mark changes of +37.79% and +29.93%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ANET. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ANET currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, ANET is currently trading at a Forward P/E ratio of 26.5. For comparison, its industry has an average Forward P/E of 17.27, which means ANET is trading at a premium to the group.
Also, we should mention that ANET has a PEG ratio of 1.22. 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. The Communication - Components industry currently had an average PEG ratio of 1.59 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow ANET in the coming trading sessions, be sure to utilize Zacks.com.