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Applied Materials (AMAT) Exceeds Market Returns: Some Facts to Consider
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Applied Materials (AMAT - Free Report) closed the latest trading day at $141.74, indicating a +0.98% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.9%.
Heading into today, shares of the maker of chipmaking equipment had gained 0.15% over the past month, lagging the Computer and Technology sector's gain of 0.56% and the S&P 500's gain of 1.45% in that time.
The upcoming earnings release of Applied Materials will be of great interest to investors. The company's earnings report is expected on November 16, 2023. It is anticipated that the company will report an EPS of $1.98, marking a 2.46% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, down 3.35% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.31% lower within the past month. Applied Materials is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Applied Materials is presently being traded at a Forward P/E ratio of 18.01. For comparison, its industry has an average Forward P/E of 20.96, which means Applied Materials is trading at a discount to the group.
Also, we should mention that AMAT has a PEG ratio of 3.23. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.23 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 189, placing it within the bottom 25% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Applied Materials (AMAT) Exceeds Market Returns: Some Facts to Consider
Applied Materials (AMAT - Free Report) closed the latest trading day at $141.74, indicating a +0.98% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.9%.
Heading into today, shares of the maker of chipmaking equipment had gained 0.15% over the past month, lagging the Computer and Technology sector's gain of 0.56% and the S&P 500's gain of 1.45% in that time.
The upcoming earnings release of Applied Materials will be of great interest to investors. The company's earnings report is expected on November 16, 2023. It is anticipated that the company will report an EPS of $1.98, marking a 2.46% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, down 3.35% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.31% lower within the past month. Applied Materials is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Applied Materials is presently being traded at a Forward P/E ratio of 18.01. For comparison, its industry has an average Forward P/E of 20.96, which means Applied Materials is trading at a discount to the group.
Also, we should mention that AMAT has a PEG ratio of 3.23. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.23 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 189, placing it within the bottom 25% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.