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Why Applied Materials (AMAT) Outpaced the Stock Market Today
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Applied Materials (AMAT - Free Report) ended the recent trading session at $162.05, demonstrating a +0.41% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.17% gain on the day. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq added 0.2%.
Shares of the maker of chipmaking equipment have appreciated by 7.97% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.71%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is expected to report EPS of $1.89, down 6.9% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $6.47 billion, indicating a 3.96% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.51 per share and a revenue of $25.88 billion, representing changes of -6.71% and -2.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. Applied Materials is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 21.48. This signifies a discount in comparison to the average Forward P/E of 25.62 for its industry.
Also, we should mention that AMAT has a PEG ratio of 2.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 3.79.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% of all 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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Why Applied Materials (AMAT) Outpaced the Stock Market Today
Applied Materials (AMAT - Free Report) ended the recent trading session at $162.05, demonstrating a +0.41% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.17% gain on the day. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq added 0.2%.
Shares of the maker of chipmaking equipment have appreciated by 7.97% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.71%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is expected to report EPS of $1.89, down 6.9% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $6.47 billion, indicating a 3.96% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.51 per share and a revenue of $25.88 billion, representing changes of -6.71% and -2.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. Applied Materials is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 21.48. This signifies a discount in comparison to the average Forward P/E of 25.62 for its industry.
Also, we should mention that AMAT has a PEG ratio of 2.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 3.79.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% of all 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.