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Applied Materials (AMAT) Gains As Market Dips: What You Should Know
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In the latest trading session, Applied Materials (AMAT - Free Report) closed at $88.14, marking a +0.7% move from the previous day. This change outpaced the S&P 500's 0.74% loss on the day. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the maker of chipmaking equipment had gained 4.02% over the past month, outpacing the Computer and Technology sector's gain of 3.19% and lagging the S&P 500's gain of 4.58% in that time.
Wall Street will be looking for positivity from Applied Materials as it approaches its next earnings report date. In that report, analysts expect Applied Materials to post earnings of $1.73 per share. This would mark a year-over-year decline of 10.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.43 billion, up 5.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.37 per share and revenue of $25.47 billion. These totals would mark changes of +7.75% and +10.43%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Applied Materials. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 3.98% lower. Applied Materials is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 11.87. This represents a discount compared to its industry's average Forward P/E of 12.67.
We can also see that AMAT currently has a PEG ratio of 2.4. 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 1.53 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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) Gains As Market Dips: What You Should Know
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $88.14, marking a +0.7% move from the previous day. This change outpaced the S&P 500's 0.74% loss on the day. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the maker of chipmaking equipment had gained 4.02% over the past month, outpacing the Computer and Technology sector's gain of 3.19% and lagging the S&P 500's gain of 4.58% in that time.
Wall Street will be looking for positivity from Applied Materials as it approaches its next earnings report date. In that report, analysts expect Applied Materials to post earnings of $1.73 per share. This would mark a year-over-year decline of 10.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.43 billion, up 5.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.37 per share and revenue of $25.47 billion. These totals would mark changes of +7.75% and +10.43%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Applied Materials. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 3.98% lower. Applied Materials is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 11.87. This represents a discount compared to its industry's average Forward P/E of 12.67.
We can also see that AMAT currently has a PEG ratio of 2.4. 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 1.53 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.