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Arista Networks (ANET) Stock Falls Amid Market Uptick: What Investors Need to Know

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The most recent trading session ended with Arista Networks (ANET - Free Report) standing at $413.47, reflecting a -0.83% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.77%. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.87%.

Heading into today, shares of the cloud networking company had gained 15.89% over the past month, outpacing the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87% in that time.

Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company plans to announce its earnings on November 7, 2024. In that report, analysts expect Arista Networks to post earnings of $2.08 per share. This would mark year-over-year growth of 13.66%. In the meantime, our current consensus estimate forecasts the revenue to be $1.75 billion, indicating a 16% growth compared to the corresponding quarter of the prior year.

ANET's full-year Zacks Consensus Estimates are calling for earnings of $8.24 per share and revenue of $6.8 billion. These results would represent year-over-year changes of +18.73% and +16.07%, respectively.

Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 witnessed an unchanged state. Right now, Arista Networks possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Arista Networks is at present trading with a Forward P/E ratio of 50.57. This signifies a premium in comparison to the average Forward P/E of 24.35 for its industry.

We can also see that ANET currently has a PEG ratio of 2.94. 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 Communication - Components industry had an average PEG ratio of 2.94 as trading concluded yesterday.

The Communication - Components industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 163, this industry ranks in the bottom 36% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ANET in the coming trading sessions, be sure to utilize Zacks.com.


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