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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 at $97.92 in the latest trading session, marking a -1.4% move from the prior day. This move lagged the S&P 500's daily loss of 1.17%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 2.45%.
Coming into today, shares of the maker of chipmaking equipment had lost 6.41% in the past month. In that same time, the Computer and Technology sector lost 8.27%, while the S&P 500 lost 5.25%.
Applied Materials will be looking to display strength as it nears its next earnings release. In that report, analysts expect Applied Materials to post earnings of $1.93 per share. This would mark year-over-year growth of 2.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.68 billion, up 6.59% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $6.83 per share and revenue of $24.43 billion. These results would represent year-over-year changes of -11.3% and -5.26%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 0.13% lower within the past month. Applied Materials is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Applied Materials is currently trading at a Forward P/E ratio of 14.53. This represents a discount compared to its industry's average Forward P/E of 15.12.
It is also worth noting that AMAT currently has a PEG ratio of 2.12. 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. AMAT's industry had an average PEG ratio of 1.72 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 47, which puts 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Applied Materials (AMAT) Dips More Than Broader Markets: What You Should Know
Applied Materials (AMAT - Free Report) closed at $97.92 in the latest trading session, marking a -1.4% move from the prior day. This move lagged the S&P 500's daily loss of 1.17%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 2.45%.
Coming into today, shares of the maker of chipmaking equipment had lost 6.41% in the past month. In that same time, the Computer and Technology sector lost 8.27%, while the S&P 500 lost 5.25%.
Applied Materials will be looking to display strength as it nears its next earnings release. In that report, analysts expect Applied Materials to post earnings of $1.93 per share. This would mark year-over-year growth of 2.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.68 billion, up 6.59% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $6.83 per share and revenue of $24.43 billion. These results would represent year-over-year changes of -11.3% and -5.26%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 0.13% lower within the past month. Applied Materials is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Applied Materials is currently trading at a Forward P/E ratio of 14.53. This represents a discount compared to its industry's average Forward P/E of 15.12.
It is also worth noting that AMAT currently has a PEG ratio of 2.12. 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. AMAT's industry had an average PEG ratio of 1.72 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 47, which puts 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.