Arista Networks (ANET) Stock Declines While Market Improves: Some Information for Investors

In the latest market close, Arista Networks (ANET) reached $77.48, with a -0.59% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.55%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.14%.Shares of the cloud networking company have depreciated by 16.24% over the course of the past month, underperforming the Computer and Technology sector's loss of 8.88% and the S&P 500's loss of 6.22%.The investment community will be paying close attention to the earnings performance of Arista Networks in its upcoming release. In that report, analysts expect Arista Networks to post earnings of $0.60 per share. This would mark year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.96 billion, up 24.71% from the year-ago period.ANET's full-year Zacks Consensus Estimates are calling for earnings of $2.56 per share and revenue of $8.27 billion. These results would represent year-over-year changes of +12.78% and +18.08%, respectively.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Arista Networks is carrying a Zacks Rank of #2 (Buy).In the context of valuation, Arista Networks is at present trading with a Forward P/E ratio of 30.48. This signifies a premium in comparison to the average Forward P/E of 26.45 for its industry.One should further note that ANET currently holds a PEG ratio of 2.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.01.The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% 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.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks