We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Applied Materials (AMAT) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Applied Materials (AMAT - Free Report) closed the most recent trading day at $39.12, moving +0.57% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.74%.
Coming into today, shares of the maker of chipmaking equipment had gained 13.41% in the past month. In that same time, the Computer and Technology sector gained 9.76%, while the S&P 500 gained 7.71%.
AMAT will be looking to display strength as it nears its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect AMAT to post earnings of $0.79 per share. This would mark a year-over-year decline of 25.47%. Our most recent consensus estimate is calling for quarterly revenue of $3.72 billion, down 11.57% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $3.39 per share and revenue of $15.30 billion. These results would represent year-over-year changes of -23.82% and -11.32%, respectively.
Any recent changes to analyst estimates for AMAT should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.92% lower. AMAT is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, AMAT is currently trading at a Forward P/E ratio of 11.46. This valuation marks a discount compared to its industry's average Forward P/E of 12.84.
Meanwhile, AMAT's PEG ratio is currently 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow AMAT in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Applied Materials (AMAT) Outpaces Stock Market Gains: What You Should Know
Applied Materials (AMAT - Free Report) closed the most recent trading day at $39.12, moving +0.57% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.74%.
Coming into today, shares of the maker of chipmaking equipment had gained 13.41% in the past month. In that same time, the Computer and Technology sector gained 9.76%, while the S&P 500 gained 7.71%.
AMAT will be looking to display strength as it nears its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect AMAT to post earnings of $0.79 per share. This would mark a year-over-year decline of 25.47%. Our most recent consensus estimate is calling for quarterly revenue of $3.72 billion, down 11.57% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $3.39 per share and revenue of $15.30 billion. These results would represent year-over-year changes of -23.82% and -11.32%, respectively.
Any recent changes to analyst estimates for AMAT should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.92% lower. AMAT is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, AMAT is currently trading at a Forward P/E ratio of 11.46. This valuation marks a discount compared to its industry's average Forward P/E of 12.84.
Meanwhile, AMAT's PEG ratio is currently 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow AMAT in the coming trading sessions, be sure to utilize Zacks.com.