Arista Networks (ANET) closed the most recent trading day at $383.82, moving +0.94% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.42%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.38%.

The cloud networking company's stock has climbed by 7.61% in the past month, exceeding the Computer and Technology sector's gain of 1.78% and the S&P 500's gain of 2.06%.

The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. On that day, Arista Networks is projected to report earnings of $2.08 per share, which would represent year-over-year growth of 13.66%. Our most recent consensus estimate is calling for quarterly revenue of $1.75 billion, up 16% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.24 per share and a revenue of $6.8 billion, representing changes of +18.73% and +16.07%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Arista Networks possesses a Zacks Rank of #2 (Buy).

Digging into valuation, Arista Networks currently has a Forward P/E ratio of 46.12. This expresses a premium compared to the average Forward P/E of 23.52 of its industry.

We can also see that ANET currently has a PEG ratio of 2.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Communication - Components industry stood at 2.68 at the close of the market yesterday.

The Communication - Components industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 18, this industry ranks in the top 8% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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