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Applied Materials (AMAT) Stock Sinks As Market Gains: What You Should Know
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Applied Materials (AMAT - Free Report) closed the most recent trading day at $137.06, moving -1.1% from the previous trading session. This change lagged the S&P 500's 0.51% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Coming into today, shares of the maker of chipmaking equipment had gained 3.88% in the past month. In that same time, the Computer and Technology sector gained 4.34%, while the S&P 500 gained 5.51%.
Investors will be hoping for strength from Applied Materials as it approaches its next earnings release. The company is expected to report EPS of $1.90, up 16.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.35 billion, up 13.78% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.06 per share and revenue of $26.46 billion. These totals would mark changes of +17.84% and +14.73%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Applied Materials. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 0.08% lower. Applied Materials is currently a Zacks Rank #3 (Hold).
In terms of valuation, Applied Materials is currently trading at a Forward P/E ratio of 17.2. For comparison, its industry has an average Forward P/E of 17.59, which means Applied Materials is trading at a discount to the group.
Also, we should mention that AMAT has a PEG ratio of 1.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.52 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 AMAT in the coming trading sessions, be sure to utilize Zacks.com.
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Applied Materials (AMAT) Stock Sinks As Market Gains: What You Should Know
Applied Materials (AMAT - Free Report) closed the most recent trading day at $137.06, moving -1.1% from the previous trading session. This change lagged the S&P 500's 0.51% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Coming into today, shares of the maker of chipmaking equipment had gained 3.88% in the past month. In that same time, the Computer and Technology sector gained 4.34%, while the S&P 500 gained 5.51%.
Investors will be hoping for strength from Applied Materials as it approaches its next earnings release. The company is expected to report EPS of $1.90, up 16.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.35 billion, up 13.78% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.06 per share and revenue of $26.46 billion. These totals would mark changes of +17.84% and +14.73%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Applied Materials. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 0.08% lower. Applied Materials is currently a Zacks Rank #3 (Hold).
In terms of valuation, Applied Materials is currently trading at a Forward P/E ratio of 17.2. For comparison, its industry has an average Forward P/E of 17.59, which means Applied Materials is trading at a discount to the group.
Also, we should mention that AMAT has a PEG ratio of 1.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.52 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 AMAT in the coming trading sessions, be sure to utilize Zacks.com.