Arista(US:ANET) ZACKS·2024-06-18 22:51Company Performance - Arista Networks (ANET) closed at $340.34, with a slight increase of +0.08% from the previous day, underperforming the S&P 500's gain of 0.25% [1] - The stock has increased by 6.48% over the past month, which is lower than the Computer and Technology sector's gain of 8.7% and higher than the S&P 500's gain of 3.34% [1] - Upcoming earnings are anticipated to show an EPS of $1.93, reflecting a 22.15% increase year-over-year, with projected revenue of $1.64 billion, up 12.31% from the previous year [1] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $7.92 per share and revenue of $6.69 billion, indicating increases of +14.12% and +14.15% respectively compared to the previous year [2] Analyst Sentiment - Recent changes in analyst estimates for Arista Networks are crucial, as upward revisions indicate positive sentiment regarding the company's business operations and profit generation capabilities [2] - The Zacks Rank system currently rates Arista Networks as 1 (Strong Buy), which has historically outperformed with an average annual return of +25% since 1988 [3] Valuation Metrics - Arista Networks has a Forward P/E ratio of 42.96, which is a premium compared to the industry average Forward P/E of 20.37 [3] - The company has a PEG ratio of 2.74, significantly higher than the average PEG ratio of 0.83 for the Communication - Components industry [3] Industry Context - The Communication - Components industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 96, placing it in the top 39% of over 250 industries [4] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]