The most recent trading session ended with Arista Networks (ANET) standing at $73.59, reflecting a +1.27% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.79%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 0.64%.

Shares of the cloud networking company have depreciated by 12.98% over the course of the past month, underperforming the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56%.

Investors will be eagerly watching for the performance of Arista Networks in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 6, 2025. The company is forecasted to report an EPS of $0.59, showcasing a 18% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.96 billion, reflecting a 24.71% rise from the equivalent quarter last year.

ANET's full-year Zacks Consensus Estimates are calling for earnings of $2.47 per share and revenue of $8.26 billion. These results would represent year-over-year changes of +8.81% and +18.02%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.3% lower. Right now, Arista Networks possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 29.47. This valuation marks a premium compared to its industry's average Forward P/E of 25.02.

One should further note that ANET currently holds a PEG ratio of 2.04. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.85 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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Arista Networks, Inc. (ANET) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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