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Applied Materials (AMAT) Dips More Than Broader Markets: What You Should Know

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Applied Materials (AMAT - Free Report) closed at $38.95 in the latest trading session, marking a -1.73% move from the prior day. This change lagged the S&P 500's 0.46% loss on the day. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, lost 0.63%.

Coming into today, shares of the maker of chipmaking equipment had gained 0.13% in the past month. In that same time, the Computer and Technology sector gained 2.74%, while the S&P 500 gained 1.08%.

AMAT will be looking to display strength as it nears its next earnings release. On that day, AMAT is projected to report earnings of $0.66 per share, which would represent a year-over-year decline of 45.9%. Our most recent consensus estimate is calling for quarterly revenue of $3.48 billion, down 23.9% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.94 per share and revenue of $14.50 billion, which would represent changes of -33.93% and -15.97%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AMAT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1.43% lower within the past month. AMAT is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, AMAT is holding a Forward P/E ratio of 13.49. Its industry sports an average Forward P/E of 13.49, so we one might conclude that AMAT is trading at a no noticeable deviation comparatively.

Meanwhile, AMAT's PEG ratio is currently 1.57. 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 1.31 based on yesterday's closing prices.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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