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Applied Materials (AMAT) Stock Drops Despite Market Gains: Important Facts to Note
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The latest trading session saw Applied Materials (AMAT - Free Report) ending at $131.11, denoting a -0.15% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 1.2%. At the same time, the Dow added 1.58%, and the tech-heavy Nasdaq gained 1.16%.
The maker of chipmaking equipment's stock has dropped by 5.16% in the past month, falling short of the Computer and Technology sector's loss of 3.32% and the S&P 500's loss of 3.58%.
The upcoming earnings release of Applied Materials will be of great interest to investors. The company is forecasted to report an EPS of $1.98, showcasing a 2.46% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.52 billion, down 3.35% from the prior-year quarter.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $7.90 per share and revenue of $26.32 billion. These results would represent year-over-year changes of +2.6% and +2.06%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Materials. These revisions help to show the ever-changing nature 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Applied Materials currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Applied Materials is holding a Forward P/E ratio of 16.61. This represents a discount compared to its industry's average Forward P/E of 19.88.
It is also worth noting that AMAT currently has a PEG ratio of 2.98. 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. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 2.98.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 23% echelons of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Applied Materials (AMAT) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw Applied Materials (AMAT - Free Report) ending at $131.11, denoting a -0.15% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 1.2%. At the same time, the Dow added 1.58%, and the tech-heavy Nasdaq gained 1.16%.
The maker of chipmaking equipment's stock has dropped by 5.16% in the past month, falling short of the Computer and Technology sector's loss of 3.32% and the S&P 500's loss of 3.58%.
The upcoming earnings release of Applied Materials will be of great interest to investors. The company is forecasted to report an EPS of $1.98, showcasing a 2.46% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.52 billion, down 3.35% from the prior-year quarter.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $7.90 per share and revenue of $26.32 billion. These results would represent year-over-year changes of +2.6% and +2.06%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Materials. These revisions help to show the ever-changing nature 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Applied Materials currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Applied Materials is holding a Forward P/E ratio of 16.61. This represents a discount compared to its industry's average Forward P/E of 19.88.
It is also worth noting that AMAT currently has a PEG ratio of 2.98. 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. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 2.98.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 23% echelons of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.