Back to top

Image: Bigstock

Arista Networks (ANET) Rises Higher Than Market: Key Facts

Read MoreHide Full Article

Arista Networks (ANET - Free Report) closed at $112.32 in the latest trading session, marking a +0.74% move from the prior day. This move outpaced the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.35%.

Prior to today's trading, shares of the cloud networking company had lost 6.29% over the past month. This has lagged the Computer and Technology sector's loss of 1.35% and the S&P 500's gain of 1.02% in that time.

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 February 18, 2025. On that day, Arista Networks is projected to report earnings of $0.57 per share, which would represent year-over-year growth of 9.62%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.89 billion, indicating a 22.42% increase compared to the same quarter of the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Arista Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's 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 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 past month, there's been a 0.53% rise in the Zacks Consensus EPS estimate. Arista Networks presently features a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 46.03. This denotes a premium relative to the industry's average Forward P/E of 22.07.

It is also worth noting that ANET currently has a PEG ratio of 2.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Communication - Components industry had an average PEG ratio of 1.48.

The Communication - Components industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 28% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Arista Networks, Inc. (ANET) - free report >>

Published in