In the latest trading session, Arista Networks (ANET - Free Report) closed at $285.18, marking a +1.2% move from the previous day. This change outpaced the S&P 500's 0.3% gain on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq gained 0.44%.
Heading into today, shares of the cloud networking company had gained 22.96% over the past month, outpacing the Computer and Technology sector's gain of 4.56% and the S&P 500's gain of 2.91% in that time.
ANET will be looking to display strength as it nears its next earnings release. In that report, analysts expect ANET to post earnings of $2.07 per share. This would mark year-over-year growth of 24.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $594.21 million, up 25.76% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $9.27 per share and revenue of $2.65 billion. These results would represent year-over-year changes of +16.46% and +23.3%, respectively.
It is also important to note the recent changes to analyst estimates for ANET. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.06% higher. ANET currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, ANET is holding a Forward P/E ratio of 30.39. Its industry sports an average Forward P/E of 21.3, so we one might conclude that ANET is trading at a premium comparatively.
Investors should also note that ANET has a PEG ratio of 1.51 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. The Communication - Components was holding an average PEG ratio of 1.95 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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.
To follow ANET in the coming trading sessions, be sure to utilize Zacks.com.