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Applied Materials (AMAT) Increases Yet Falls Behind Market: What Investors Need to Know
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In the latest trading session, Applied Materials (AMAT - Free Report) closed at $245.84, marking a +0.12% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. Meanwhile, the Dow gained 1.85%, and the Nasdaq, a tech-heavy index, added 0.2%.
The maker of chipmaking equipment's stock has climbed by 1.11% in the past month, exceeding the Computer and Technology sector's gain of 1.06% and lagging the S&P 500's gain of 3.82%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.01, signifying a 5.79% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.67 billion, indicating a 3.8% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.33 per share and revenue of $26.91 billion. These totals would mark changes of +3.48% and +1.48%, respectively, from last 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Applied Materials boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Applied Materials is presently being traded at a Forward P/E ratio of 29.48. This indicates a discount in contrast to its industry's Forward P/E of 32.68.
Investors should also note that AMAT has a PEG ratio of 3.21 right now. 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. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 3.16.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Applied Materials (AMAT) Increases Yet Falls Behind Market: What Investors Need to Know
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $245.84, marking a +0.12% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. Meanwhile, the Dow gained 1.85%, and the Nasdaq, a tech-heavy index, added 0.2%.
The maker of chipmaking equipment's stock has climbed by 1.11% in the past month, exceeding the Computer and Technology sector's gain of 1.06% and lagging the S&P 500's gain of 3.82%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.01, signifying a 5.79% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.67 billion, indicating a 3.8% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.33 per share and revenue of $26.91 billion. These totals would mark changes of +3.48% and +1.48%, respectively, from last 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Applied Materials boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Applied Materials is presently being traded at a Forward P/E ratio of 29.48. This indicates a discount in contrast to its industry's Forward P/E of 32.68.
Investors should also note that AMAT has a PEG ratio of 3.21 right now. 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. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 3.16.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.