Yahoo Finance Arista Networks (ANET) Outperforms Broader Market: What You Need to Know
In the latest trading session, Arista Networks (ANET) closed at $334.53, marking a +1.62% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.16%.
Shares of the cloud networking company witnessed a gain of 7.39% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.06% and the S&P 500's gain of 2.83%.
Market participants will be closely following the financial results of Arista Networks in its upcoming release. It is anticipated that the company will report an EPS of $1.93, marking a 22.15% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.64 billion, indicating a 12.31% growth compared to the corresponding quarter of the prior year.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $7.92 per share and revenue of $6.69 billion. These results would represent year-over-year changes of +14.12% and +14.15%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Arista Networks possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 41.57. For comparison, its industry has an average Forward P/E of 20.68, which means Arista Networks is trading at a premium to the group.
It is also worth noting that ANET currently has a PEG ratio of 2.59. 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 1.3 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
