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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 $145.16, moving -1.93% from the previous trading session. This change lagged the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq lost 1.17%.
Heading into today, shares of the maker of chipmaking equipment had gained 7.6% over the past month, outpacing the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.35% in that time.
Applied Materials will be looking to display strength as it nears its next earnings release, which is expected to be August 17, 2023. 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.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $7.34 per share and revenue of $25.39 billion. These results would represent year-over-year changes of -4.68% and -1.53%, respectively.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Applied Materials is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 20.16 right now. Its industry sports an average Forward P/E of 25.21, so we one might conclude that Applied Materials is trading at a discount comparatively.
We can also see that AMAT currently has a PEG ratio of 3.75. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 3.75 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 57, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much 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 $145.16, moving -1.93% from the previous trading session. This change lagged the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq lost 1.17%.
Heading into today, shares of the maker of chipmaking equipment had gained 7.6% over the past month, outpacing the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.35% in that time.
Applied Materials will be looking to display strength as it nears its next earnings release, which is expected to be August 17, 2023. 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.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $7.34 per share and revenue of $25.39 billion. These results would represent year-over-year changes of -4.68% and -1.53%, respectively.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Applied Materials is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 20.16 right now. Its industry sports an average Forward P/E of 25.21, so we one might conclude that Applied Materials is trading at a discount comparatively.
We can also see that AMAT currently has a PEG ratio of 3.75. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 3.75 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 57, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.