Arista Networks, Inc. (ANET) Hit a 52 Week High, Can the Run Continue?

Stock Performance - Arista Networks shares have risen 6 3% over the past month and hit a new 52-week high of $120 98 [1] - The stock has gained 8 5% since the start of the year compared to the Zacks Computer and Technology sector's 32 9% and the Zacks Communication - Components industry's 85 9% [1] Earnings and Revenue - Arista Networks has consistently beaten earnings consensus estimates in the last four quarters with the latest EPS of$ 0 6 versus the estimate of $0 52 and revenue beating the consensus by 3 15% [2] - For the current fiscal year the company is expected to post earnings of$ 2 42 per share on $6 96 billion in revenues and for the next fiscal year earnings of$ 2 83 per share on $8 18 billion in revenues representing year-over-year changes of 10 34% and 17 54% respectively [3] Valuation Metrics - The stock trades at 49 5X current fiscal year EPS estimates a premium to the peer industry average of 23 3X [7] - On a trailing cash flow basis the stock trades at 75 5X versus its peer group's average of 18 2X and has a PEG ratio of 2 9 [7] Zacks Style Scores and Rank - Arista Networks has a Value Score of F Growth Score of A and Momentum Score of B resulting in a VGM Score of B [6] - The company currently holds a Zacks Rank of 2 (Buy) due to rising earnings estimates fitting the criteria for stocks with Zacks Rank of 1 or 2 and Style Scores of A or B [8]