Arista(US:ANET) ZACKS·2024-06-10 22:50Company Performance - Arista Networks (ANET) closed at $297.58, with a daily increase of +0.27%, outperforming the S&P 500's gain of 0.26% [1] - The stock has decreased by 5.49% over the past month, while the Computer and Technology sector gained 6.38% and the S&P 500 increased by 3.25% [1] - The upcoming earnings release is expected to show an EPS of $1.93, a 22.15% increase year-over-year, with revenue projected at $1.64 billion, up 12.31% from the previous year [1] Earnings Estimates - For the full year, earnings are projected at $7.92 per share and revenue at $6.69 billion, reflecting increases of +14.12% and +14.15% respectively from the prior year [2] - Recent shifts in analyst projections are important for understanding business trends, with positive revisions indicating optimism about the company's outlook [2] Valuation Metrics - Arista Networks has a Zacks Rank of 1 (Strong Buy), with an average annual return of +25% for 1 stocks since 1988 [3] - The company is trading at a Forward P/E ratio of 37.49, which is a premium compared to the industry average of 19.41 [3] - The PEG ratio for Arista Networks is 2.39, while the average PEG ratio for Communication - Components stocks is 0.85 [3] Industry Overview - The Communication - Components industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 81, placing it in the top 33% of over 250 industries [4] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating strong potential for growth in this sector [4]