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Here's Why Applied Materials (AMAT) Fell More Than Broader Market
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The latest trading session saw Applied Materials (AMAT - Free Report) ending at $219.65, denoting a -1.71% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.06%.
The the stock of maker of chipmaking equipment has fallen by 2.77% in the past month, lagging the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is slated to reveal its earnings on August 15, 2024. The company is forecasted to report an EPS of $2.01, showcasing a 5.79% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.67 billion, indicating a 3.8% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $8.33 per share and a revenue of $26.91 billion, demonstrating changes of +3.48% and +1.48%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Applied Materials. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate remained stagnant. Applied Materials is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Applied Materials is currently exchanging hands at a Forward P/E ratio of 26.83. For comparison, its industry has an average Forward P/E of 31.09, which means Applied Materials is trading at a discount to the group.
It is also worth noting that AMAT currently has a PEG ratio of 2.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AMAT's industry had an average PEG ratio of 2.81 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why Applied Materials (AMAT) Fell More Than Broader Market
The latest trading session saw Applied Materials (AMAT - Free Report) ending at $219.65, denoting a -1.71% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.06%.
The the stock of maker of chipmaking equipment has fallen by 2.77% in the past month, lagging the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is slated to reveal its earnings on August 15, 2024. The company is forecasted to report an EPS of $2.01, showcasing a 5.79% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.67 billion, indicating a 3.8% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $8.33 per share and a revenue of $26.91 billion, demonstrating changes of +3.48% and +1.48%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Applied Materials. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate remained stagnant. Applied Materials is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Applied Materials is currently exchanging hands at a Forward P/E ratio of 26.83. For comparison, its industry has an average Forward P/E of 31.09, which means Applied Materials is trading at a discount to the group.
It is also worth noting that AMAT currently has a PEG ratio of 2.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AMAT's industry had an average PEG ratio of 2.81 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.