The latest trading session saw Arista Networks (ANET) ending at $109.07, denoting a +0.93% adjustment from its last day's close. This change outpaced the S&P 500's 0.09% loss on the day. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.1%.

Shares of the cloud networking company witnessed a gain of 13.25% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.04% and the S&P 500's loss of 0.29%.

The investment community will be paying close attention to the earnings performance of Arista Networks in its upcoming release. The company is predicted to post an EPS of $0.58, indicating a 11.54% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.89 billion, showing a 22.42% escalation compared to the year-ago quarter.

ANET's full-year Zacks Consensus Estimates are calling for earnings of $2.20 per share and revenue of $6.96 billion. These results would represent year-over-year changes of +26.44% and +18.74%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.39% increase. Arista Networks is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 49.15. For comparison, its industry has an average Forward P/E of 23.47, which means Arista Networks is trading at a premium to the group.

Also, we should mention that ANET has a PEG ratio of 2.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Communication - Components stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.