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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 $149.81, marking a -0.81% move from the previous day. This change lagged the S&P 500's 0.57% gain on the day. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 0.75%.
Shares of the maker of chipmaking equipment witnessed a loss of 3.94% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.51% and the S&P 500's gain of 3.4%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. On that day, Applied Materials is projected to report earnings of $1.89 per share, which would represent a year-over-year decline of 6.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.47 billion, down 3.96% from the year-ago period.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% upward. As of now, Applied Materials holds a Zacks Rank of #3 (Hold).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 20.1. This expresses a discount compared to the average Forward P/E of 23.69 of its industry.
Meanwhile, AMAT's PEG ratio is currently 2.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.41 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $149.81, marking a -0.81% move from the previous day. This change lagged the S&P 500's 0.57% gain on the day. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 0.75%.
Shares of the maker of chipmaking equipment witnessed a loss of 3.94% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.51% and the S&P 500's gain of 3.4%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. On that day, Applied Materials is projected to report earnings of $1.89 per share, which would represent a year-over-year decline of 6.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.47 billion, down 3.96% from the year-ago period.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% upward. As of now, Applied Materials holds a Zacks Rank of #3 (Hold).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 20.1. This expresses a discount compared to the average Forward P/E of 23.69 of its industry.
Meanwhile, AMAT's PEG ratio is currently 2.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.41 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.