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Arista Networks (ANET) Rises As Market Takes a Dip: Key Facts

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Arista Networks (ANET - Free Report) closed the most recent trading day at $406.01, moving +1% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.18%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.27%.

Heading into today, shares of the cloud networking company had gained 4.56% over the past month, lagging the Computer and Technology sector's gain of 6.6% and outpacing the S&P 500's gain of 4.46% in that time.

The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company is scheduled to release its earnings on November 7, 2024. The company's earnings per share (EPS) are projected to be $2.08, reflecting a 13.66% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.75 billion, up 16.15% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $8.25 per share and a revenue of $6.81 billion, demonstrating changes of +18.88% and +16.14%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.15% increase. As of now, Arista Networks holds a Zacks Rank of #2 (Buy).

Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 48.7. For comparison, its industry has an average Forward P/E of 23.31, which means Arista Networks is trading at a premium to the group.

We can also see that ANET currently has a PEG ratio of 2.83. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Communication - Components stocks are, on average, holding a PEG ratio of 2.83 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 34, positioning it in the top 14% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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