Yahoo Finance Arista Networks (ANET) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Arista Networks (ANET) closed at $255.21, marking a -0.53% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.34% for the day. On the other hand, the Dow registered a gain of 0.23%, and the technology-centric Nasdaq decreased by 0.33%.
The cloud networking company's shares have seen a decrease of 11.79% over the last month, not keeping up with the Computer and Technology sector's loss of 4.23% and the S&P 500's loss of 4.05%.
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 May 7, 2024. The company is expected to report EPS of $1.74, up 21.68% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.55 billion, indicating a 14.48% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.49 per share and a revenue of $6.55 billion, indicating changes of +7.93% and +11.78%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Arista Networks. These revisions help to show the ever-changing nature of 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 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 a 0.37% increase. At present, Arista Networks boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 34.27. This indicates a premium in contrast to its industry's Forward P/E of 17.82.
Also, we should mention that ANET has a PEG ratio of 1.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Communication - Components industry had an average PEG ratio of 1.42 as trading concluded yesterday.
The Communication - Components industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 22, placing it within the top 9% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
