Arista Networks (ANET) ended the recent trading session at $267.05, demonstrating a +0.82% swing from the preceding day's closing price. This move traded in line with S&P 500. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw an increase of 0.95%.
The the stock of cloud networking company has risen by 8.03% in the past month, lagging the Computer and Technology sector's gain of 10.9% and overreaching the S&P 500's gain of 5.59%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. The company's earnings report is set to go public on February 12, 2024. The company is predicted to post an EPS of $1.71, indicating a 21.28% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.53 billion, up 19.98% from the prior-year quarter.
Investors should also pay attention to any latest changes in 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 company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. Arista Networks is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 36.67. This expresses a premium compared to the average Forward P/E of 17.88 of its industry.
It's also important to note that ANET currently trades at a PEG ratio of 1.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Communication - Components stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.
The Communication - Components industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 115, positioning it in the top 46% 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.
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