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Applied Materials (AMAT) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Applied Materials (AMAT - Free Report) closed at $144.61, marking a -0.38% move from the previous day. This change lagged the S&P 500's 0.03% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.12%.
Heading into today, shares of the maker of chipmaking equipment had gained 4.51% over the past month, outpacing the Computer and Technology sector's gain of 0.11% and the S&P 500's gain of 1.66% in that time.
Investors will be hoping for strength from Applied Materials as it approaches 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, our latest consensus estimate is calling for revenue of $6.16 billion, down 5.59% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. Applied Materials is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 19.77. For comparison, its industry has an average Forward P/E of 24.9, which means Applied Materials is trading at a discount to the group.
Meanwhile, AMAT's PEG ratio is currently 3.68. 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 was holding an average PEG ratio of 3.68 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Applied Materials (AMAT) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $144.61, marking a -0.38% move from the previous day. This change lagged the S&P 500's 0.03% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.12%.
Heading into today, shares of the maker of chipmaking equipment had gained 4.51% over the past month, outpacing the Computer and Technology sector's gain of 0.11% and the S&P 500's gain of 1.66% in that time.
Investors will be hoping for strength from Applied Materials as it approaches 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, our latest consensus estimate is calling for revenue of $6.16 billion, down 5.59% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. Applied Materials is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 19.77. For comparison, its industry has an average Forward P/E of 24.9, which means Applied Materials is trading at a discount to the group.
Meanwhile, AMAT's PEG ratio is currently 3.68. 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 was holding an average PEG ratio of 3.68 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.