Arista Networks (ANET) Exceeds Market Returns: Some Facts to Consider

In the latest trading session, Arista Networks (ANET) closed at $146.48, marking a +2.36% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.07%. Elsewhere, the Dow saw an upswing of 1.12%, while the tech-heavy Nasdaq appreciated by 1.37%. Prior to today's trading, shares of the cloud networking company had lost 4.35% lagged the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 1.08%.The investment community will be paying close attention to the earnings performance of Arista Networks in its upcoming release. The company is slated to reveal its earnings on November 4, 2025. The company's earnings per share (EPS) are projected to be $0.72, reflecting a 20% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.26 billion, reflecting a 24.73% rise from the equivalent quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.81 per share and a revenue of $8.78 billion, representing changes of +23.79% and +25.4%, respectively, from the prior year. It's also important for investors to be aware of any recent modifications to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Arista Networks is currently a Zacks Rank #3 (Hold). Digging into valuation, Arista Networks currently has a Forward P/E ratio of 50.87. This valuation marks a premium compared to its industry average Forward P/E of 29.15. One should further note that ANET currently holds a PEG ratio of 2.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.91. The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% 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. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arista Networks, Inc. (ANET): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks