Arista(US:ANET) ZACKS·2025-09-24 22:45Core Viewpoint - Arista Networks is expected to show strong earnings growth in its upcoming report, with significant increases in both EPS and revenue compared to the previous year [2][3]. Company Performance - In the latest trading session, Arista Networks' stock decreased by 1.01% to $142.64, underperforming the S&P 500, which fell by 0.29% [1]. - Over the past month, the stock has increased by 7.31%, which is lower than the Computer and Technology sector's gain of 8.98% and higher than the S&P 500's gain of 3.08% [1]. Earnings Estimates - The upcoming earnings report is anticipated to show an EPS of $0.72, reflecting a 20% growth year-over-year [2]. - Revenue is projected to reach $2.26 billion, marking a 24.73% increase from the same quarter last year [2]. - For the full year, earnings are estimated at $2.81 per share and revenue at $8.78 billion, indicating growth of 23.79% and 25.39% respectively from the previous year [3]. Analyst Estimates and Rankings - Recent changes in analyst estimates for Arista Networks suggest positive short-term business trends, which are generally viewed favorably for the company's outlook [3]. - The Zacks Rank system currently rates Arista Networks as 1 (Strong Buy), which has historically outperformed with an average annual gain of +25% for 1 stocks since 1988 [5]. Valuation Metrics - Arista Networks has a Forward P/E ratio of 51.22, which is above the industry average of 31.03 [6]. - The company also has a PEG ratio of 2.73, compared to the Internet-Software industry average PEG ratio of 2.29 [6]. Industry Context - The Internet-Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 76, placing it in the top 31% of over 250 industries [7]. - Research indicates that industries in the top 50% of the Zacks Rank tend to outperform those in the bottom half by a factor of 2 to 1 [7].