We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Applied Materials (AMAT) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Applied Materials (AMAT - Free Report) closed the most recent trading day at $97.22, moving -0.39% from the previous trading session. This change lagged the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.45%.
Coming into today, shares of the maker of chipmaking equipment had lost 9.35% in the past month. In that same time, the Computer and Technology sector lost 6.38%, while the S&P 500 lost 4.33%.
Investors will be hoping for strength from Applied Materials as it approaches its next earnings release. The company is expected to report EPS of $1.93, up 2.12% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.68 billion, up 6.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.83 per share and revenue of $24.43 billion, which would represent changes of -11.3% and -5.26%, respectively, from the prior 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. 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 14.28 right now. Its industry sports an average Forward P/E of 13.57, so we one might conclude that Applied Materials is trading at a premium comparatively.
Meanwhile, AMAT's PEG ratio is currently 2.08. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Applied Materials (AMAT) Stock Sinks As Market Gains: What You Should Know
Applied Materials (AMAT - Free Report) closed the most recent trading day at $97.22, moving -0.39% from the previous trading session. This change lagged the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.45%.
Coming into today, shares of the maker of chipmaking equipment had lost 9.35% in the past month. In that same time, the Computer and Technology sector lost 6.38%, while the S&P 500 lost 4.33%.
Investors will be hoping for strength from Applied Materials as it approaches its next earnings release. The company is expected to report EPS of $1.93, up 2.12% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.68 billion, up 6.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.83 per share and revenue of $24.43 billion, which would represent changes of -11.3% and -5.26%, respectively, from the prior 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. 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 14.28 right now. Its industry sports an average Forward P/E of 13.57, so we one might conclude that Applied Materials is trading at a premium comparatively.
Meanwhile, AMAT's PEG ratio is currently 2.08. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.