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Arista Networks (ANET) closed the latest trading day at $360.42, indicating a -0.41% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.4%.

Heading into today, shares of the cloud networking company had gained 10.17% over the past month, outpacing the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78% in that time.

The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company is scheduled to release its earnings on July 30, 2024. The company is forecasted to report an EPS of $1.93, showcasing a 22.15% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.64 billion, reflecting a 12.31% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.92 per share and a revenue of $6.69 billion, indicating changes of +14.12% and +14.15%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Arista Networks is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 45.7. This expresses a premium compared to the average Forward P/E of 19.31 of its industry.

One should further note that ANET currently holds a PEG ratio of 2.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ANET's industry had an average PEG ratio of 1.69 as of yesterday's close.

The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ANET in the coming trading sessions, be sure to utilize Zacks.com.

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