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Applied Materials (AMAT) Dips More Than Broader Markets: What You Should Know
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Applied Materials (AMAT - Free Report) closed the most recent trading day at $76.01, moving -0.38% from the previous trading session. This change lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Coming into today, shares of the maker of chipmaking equipment had lost 15.59% in the past month. In that same time, the Computer and Technology sector lost 14.71%, while the S&P 500 lost 11.67%.
Wall Street will be looking for positivity from Applied Materials as it approaches its next earnings report date. On that day, Applied Materials is projected to report earnings of $2.01 per share, which would represent year-over-year growth of 3.61%. Our most recent consensus estimate is calling for quarterly revenue of $6.66 billion, up 8.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.68 per share and revenue of $25.7 billion. These totals would mark changes of +12.28% and +11.43%, respectively, from last year.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Applied Materials is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 9.94 right now. This represents a discount compared to its industry's average Forward P/E of 11.47.
Meanwhile, AMAT's PEG ratio is currently 2.01. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Applied Materials (AMAT) Dips More Than Broader Markets: What You Should Know
Applied Materials (AMAT - Free Report) closed the most recent trading day at $76.01, moving -0.38% from the previous trading session. This change lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Coming into today, shares of the maker of chipmaking equipment had lost 15.59% in the past month. In that same time, the Computer and Technology sector lost 14.71%, while the S&P 500 lost 11.67%.
Wall Street will be looking for positivity from Applied Materials as it approaches its next earnings report date. On that day, Applied Materials is projected to report earnings of $2.01 per share, which would represent year-over-year growth of 3.61%. Our most recent consensus estimate is calling for quarterly revenue of $6.66 billion, up 8.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.68 per share and revenue of $25.7 billion. These totals would mark changes of +12.28% and +11.43%, respectively, from last year.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Applied Materials is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 9.94 right now. This represents a discount compared to its industry's average Forward P/E of 11.47.
Meanwhile, AMAT's PEG ratio is currently 2.01. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.