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

Arista Networks (ANET) closed at $137.19 in the latest trading session, marking a +2.69% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.64% for the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%. Prior to today's trading, shares of the cloud networking company had gained 3.9% outpaced the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company is predicted to post an EPS of $0.75, indicating a 15.38% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.37 billion, indicating a 22.73% growth compared to the corresponding quarter of the prior year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.88 per share and a revenue of $8.87 billion, representing changes of +26.87% and 0%, respectively, from the prior year. Investors should also note any recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. At present, Arista Networks boasts a Zacks Rank of #3 (Hold). From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 40.39. This represents a premium compared to its industry average Forward P/E of 24.2. One should further note that ANET currently holds a PEG ratio of 2.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.54. The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% 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. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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