Arista Networks (ANET) Down 18.8% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Arista Networks (ANET). Shares have lost about 18.8% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Arista Networks due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.The consensus estimate has shifted 8.64% due to these changes.VGM ScoresAt this time, Arista Networks has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Arista Networks has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Performance of an Industry PlayerArista Networks is part of the Zacks Internet - Software industry. Over the past month, Paycom Software (PAYC), a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended December 2024 more than a month ago.Paycom reported revenues of $493.8 million in the last reported quarter, representing a year-over-year change of +13.6%. EPS of $2.32 for the same period compares with $1.93 a year ago.For the current quarter, Paycom is expected to post earnings of $2.62 per share, indicating a change of +1.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.4% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Paycom. Also, the stock has a VGM Score of F.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arista Networks, Inc. (ANET): Free Stock Analysis Report Paycom Software, Inc. (PAYC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks