Arista Networks (ANET) Suffers a Larger Drop Than the General Market: Key Insights

In the latest trading session, Arista Networks (ANET) closed at $98.91, marking a -3.32% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.11%. Elsewhere, the Dow saw an upswing of 0.91%, while the tech-heavy Nasdaq depreciated by 0.82%. The cloud networking company's stock has climbed by 13.96% in the past month, exceeding the Computer and Technology sector's gain of 8.76% and the S&P 500's gain of 5.17%.The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company is predicted to post an EPS of $0.65, indicating a 25% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.11 billion, up 24.61% from the prior-year quarter. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.57 per share and revenue of $8.34 billion, indicating changes of +13.22% and +19.05%, respectively, compared to the previous year. Investors should also take note of any recent adjustments to analyst estimates for Arista Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. 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 has moved 0.66% higher within the past month. Right now, Arista Networks possesses a Zacks Rank of #2 (Buy). Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 39.81 right now. Its industry sports an average Forward P/E of 29.16, so one might conclude that Arista Networks is trading at a premium comparatively. It is also worth noting that ANET currently has a PEG ratio of 2.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.27 at the close of the market yesterday. The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 17% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks 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