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Arista Networks (ANET) shares soared 6.2% in the last trading session to close at $106.54. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10% loss over the past four weeks.

The Arista 2.0 strategy is resonating well with customers with its modern networking platforms being foundational for transformation from silos to centers of data. The company is well-positioned with the right network architecture for client-to-campus data center cloud and AI networking backed by three guiding principles. These include the best-in-class, highly proactive products with resilience, zero-touch automation and telemetry with predictive client-to-cloud one-click operations with granular visibility and prescriptive insights for deeper AI algorithms.

Arista continues to benefit from the expanding cloud networking market, which is driven by the strong demand for scalable infrastructure. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance along with programmability that enables integration with third-party applications for network management, automation and orchestration. The company’s product portfolio facilitates the implementation of high performance, highly scalable and appropriate solutions for every environment.

This cloud networking company is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of +9.6%. Revenues are expected to be $1.89 billion, up 22.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Arista Networks, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ANET going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Arista Networks is a member of the Zacks Communication - Components industry. One other stock in the same industry, AudioCodes (AUDC), finished the last trading session 1.5% lower at $10.22. AUDC has returned 10.1% over the past month.

AudioCodes' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.24. Compared to the company's year-ago EPS, this represents a change of -14.3%. AudioCodes currently boasts a Zacks Rank of #3 (Hold).

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