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Applied Materials (AMAT) Outperforms Broader Market: What You Need to Know
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Applied Materials (AMAT - Free Report) closed the latest trading day at $140.30, indicating a +0.39% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.18%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq appreciated by 0.3%.
Coming into today, shares of the maker of chipmaking equipment had lost 0.38% in the past month. In that same time, the Computer and Technology sector gained 3.65%, while the S&P 500 gained 3.08%.
The investment community will be closely monitoring the performance of Applied Materials in its forthcoming earnings report. The company is scheduled to release its earnings on November 16, 2023. The company's earnings per share (EPS) are projected to be $1.98, reflecting a 2.46% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, down 3.35% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Applied Materials. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.31% decrease. Applied Materials presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Applied Materials is currently being traded at a Forward P/E ratio of 17.93. This represents a discount compared to its industry's average Forward P/E of 21.07.
Meanwhile, AMAT's PEG ratio is currently 3.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Semiconductor Equipment - Wafer Fabrication industry stood at 3.21 at the close of the market yesterday.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Outperforms Broader Market: What You Need to Know
Applied Materials (AMAT - Free Report) closed the latest trading day at $140.30, indicating a +0.39% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.18%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq appreciated by 0.3%.
Coming into today, shares of the maker of chipmaking equipment had lost 0.38% in the past month. In that same time, the Computer and Technology sector gained 3.65%, while the S&P 500 gained 3.08%.
The investment community will be closely monitoring the performance of Applied Materials in its forthcoming earnings report. The company is scheduled to release its earnings on November 16, 2023. The company's earnings per share (EPS) are projected to be $1.98, reflecting a 2.46% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, down 3.35% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Applied Materials. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.31% decrease. Applied Materials presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Applied Materials is currently being traded at a Forward P/E ratio of 17.93. This represents a discount compared to its industry's average Forward P/E of 21.07.
Meanwhile, AMAT's PEG ratio is currently 3.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Semiconductor Equipment - Wafer Fabrication industry stood at 3.21 at the close of the market yesterday.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.