Arista Networks (ANET - Free Report) closed at $324.79 in the latest trading session, marking a +1.16% move from the prior day. This move outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Coming into today, shares of the cloud networking company had gained 3.63% in the past month. In that same time, the Computer and Technology sector gained 6.02%, while the S&P 500 gained 4.87%.
ANET will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2019. The company is expected to report EPS of $2.07, up 24.7% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $594.15 million, up 25.75% from the prior-year quarter.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $9.26 per share and revenue of $2.64 billion. These results would represent year-over-year changes of +16.33% and +22.76%, respectively.
Any recent changes to analyst estimates for ANET should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. ANET is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ANET currently has a Forward P/E ratio of 34.67. This valuation marks a premium compared to its industry's average Forward P/E of 25.53.
Investors should also note that ANET has a PEG ratio of 1.72 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 industry currently had an average PEG ratio of 2.04 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 98, which puts it in the top 39% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.