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Applied Materials (AMAT) Increases Despite Market Slip: Here's What You Need to Know
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Applied Materials (AMAT - Free Report) closed the most recent trading day at $181.87, moving +0.03% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 3%. Elsewhere, the Dow saw a downswing of 2.6%, while the tech-heavy Nasdaq depreciated by 3.43%.
Prior to today's trading, shares of the maker of chipmaking equipment had lost 25.06% over the past month. This has lagged the Computer and Technology sector's loss of 8.69% and the S&P 500's loss of 2.92% in that time.
Market participants will be closely following the financial results of Applied Materials in its upcoming release. The company plans to announce its earnings on August 15, 2024. The company is expected to report EPS of $2.01, up 5.79% from the prior-year quarter. 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.
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.
Investors might also notice recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Applied Materials boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Applied Materials is presently trading at a Forward P/E ratio of 21.83. This represents a discount compared to its industry's average Forward P/E of 26.4.
It is also worth noting that AMAT currently has a PEG ratio of 2.27. 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 2.24 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 103, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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) Increases Despite Market Slip: Here's What You Need to Know
Applied Materials (AMAT - Free Report) closed the most recent trading day at $181.87, moving +0.03% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 3%. Elsewhere, the Dow saw a downswing of 2.6%, while the tech-heavy Nasdaq depreciated by 3.43%.
Prior to today's trading, shares of the maker of chipmaking equipment had lost 25.06% over the past month. This has lagged the Computer and Technology sector's loss of 8.69% and the S&P 500's loss of 2.92% in that time.
Market participants will be closely following the financial results of Applied Materials in its upcoming release. The company plans to announce its earnings on August 15, 2024. The company is expected to report EPS of $2.01, up 5.79% from the prior-year quarter. 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.
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.
Investors might also notice recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Applied Materials boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Applied Materials is presently trading at a Forward P/E ratio of 21.83. This represents a discount compared to its industry's average Forward P/E of 26.4.
It is also worth noting that AMAT currently has a PEG ratio of 2.27. 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 2.24 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 103, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.