Arista Networks (ANET) Stock Moves -0.79%: What You Should Know

Arista Networks (ANET) closed at $109.10 in the latest trading session, marking a -0.79% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.13%.

Coming into today, shares of the cloud networking company had lost 10.62% in the past month. In that same time, the Computer and Technology sector lost 13.11%, while the S&P 500 lost 10.4%.

Arista Networks will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.05, up 41.89% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.06 billion, up 41.51% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.04 per share and revenue of $4.09 billion. These totals would mark changes of +40.77% and +38.64%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Arista Networks is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 27.25. Its industry sports an average Forward P/E of 17.57, so we one might conclude that Arista Networks is trading at a premium comparatively.

We can also see that ANET currently has a PEG ratio of 1.47. 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. The Communication - Components industry currently had an average PEG ratio of 1.71 as of yesterday's close.

The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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