Arista Networks (ANET) Outpaces Stock Market Gains: What You Should Know

Arista Networks (ANET) ended the recent trading session at $145.71, demonstrating a +1.63% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.31%. Shares of the cloud networking company witnessed a gain of 4.99% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 7.63%, and outperforming the S&P 500's gain of 3.15%.The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company's upcoming EPS is projected at $0.72, signifying a 20.00% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.26 billion, showing a 24.73% escalation compared to the year-ago quarter. For the full year, the Zacks Consensus Estimates are projecting earnings of $2.81 per share and revenue of $8.78 billion, which would represent changes of +23.79% and +25.39%, respectively, from the prior year. 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Arista Networks presently features a Zacks Rank of #1 (Strong Buy). Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 50.96. This expresses a premium compared to the average Forward P/E of 31 of its industry. Meanwhile, ANET's PEG ratio is currently 2.72. 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 2.27. The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250. 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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