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Applied Materials (AMAT) Gains As Market Dips: What You Should Know
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Applied Materials (AMAT - Free Report) closed at $142.73 in the latest trading session, marking a +0.06% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.1%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 5.8%.
Heading into today, shares of the maker of chipmaking equipment had gained 1.81% over the past month, lagging the Computer and Technology sector's gain of 3.39% and the S&P 500's gain of 3.39% in that time.
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 $1.73 per share, which would represent a year-over-year decline of 10.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.16 billion, down 5.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.34 per share and revenue of $25.39 billion, which would represent changes of -4.68% and -1.53%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Applied Materials is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 19.43 right now. For comparison, its industry has an average Forward P/E of 25.35, which means Applied Materials is trading at a discount to the group.
Also, we should mention that AMAT has a PEG ratio of 3.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.62 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 63, which puts it in the top 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Applied Materials (AMAT) Gains As Market Dips: What You Should Know
Applied Materials (AMAT - Free Report) closed at $142.73 in the latest trading session, marking a +0.06% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.1%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 5.8%.
Heading into today, shares of the maker of chipmaking equipment had gained 1.81% over the past month, lagging the Computer and Technology sector's gain of 3.39% and the S&P 500's gain of 3.39% in that time.
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 $1.73 per share, which would represent a year-over-year decline of 10.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.16 billion, down 5.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.34 per share and revenue of $25.39 billion, which would represent changes of -4.68% and -1.53%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Applied Materials is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 19.43 right now. For comparison, its industry has an average Forward P/E of 25.35, which means Applied Materials is trading at a discount to the group.
Also, we should mention that AMAT has a PEG ratio of 3.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.62 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 63, which puts it in the top 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.