In the latest market close, Arista Networks (ANET) reached $116.10, with a +1.04% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1.83%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 2.45%.
Coming into today, shares of the cloud networking company had gained 1.74% in the past month. In that same time, the Computer and Technology sector lost 3.84%, while the S&P 500 lost 3.31%.
The upcoming earnings release of Arista Networks will be of great interest to investors. The company is forecasted to report an EPS of $0.57, showcasing a 9.62% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.89 billion, up 22.42% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Arista Networks. 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.53% rise in the Zacks Consensus EPS estimate. Currently, Arista Networks is carrying a Zacks Rank of #2 (Buy).
Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 47.43. This denotes a premium relative to the industry's average Forward P/E of 22.33.
Meanwhile, ANET's PEG ratio is currently 2.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Communication - Components industry had an average PEG ratio of 1.28.
The Communication - Components industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 42, positioning it in the top 17% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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