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Applied Materials (AMAT) Outpaces Stock Market Gains: What You Should Know
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Applied Materials (AMAT - Free Report) closed the most recent trading day at $108.12, moving +1.68% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.36%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.69%.
Coming into today, shares of the maker of chipmaking equipment had gained 24.61% in the past month. In that same time, the Computer and Technology sector gained 5.4%, while the S&P 500 gained 4.27%.
AMAT will be looking to display strength as it nears its next earnings release. On that day, AMAT is projected to report earnings of $1.26 per share, which would represent year-over-year growth of 28.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.95 billion, up 19% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.97 per share and revenue of $19.69 billion, which would represent changes of +19.18% and +14.44%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AMAT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. AMAT currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AMAT is holding a Forward P/E ratio of 21.38. This valuation marks a discount compared to its industry's average Forward P/E of 23.27.
Also, we should mention that AMAT has a PEG ratio of 2.12. 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 was holding an average PEG ratio of 2.12 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% 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.
To follow AMAT in the coming trading sessions, be sure to utilize Zacks.com.
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Applied Materials (AMAT) Outpaces Stock Market Gains: What You Should Know
Applied Materials (AMAT - Free Report) closed the most recent trading day at $108.12, moving +1.68% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.36%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.69%.
Coming into today, shares of the maker of chipmaking equipment had gained 24.61% in the past month. In that same time, the Computer and Technology sector gained 5.4%, while the S&P 500 gained 4.27%.
AMAT will be looking to display strength as it nears its next earnings release. On that day, AMAT is projected to report earnings of $1.26 per share, which would represent year-over-year growth of 28.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.95 billion, up 19% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.97 per share and revenue of $19.69 billion, which would represent changes of +19.18% and +14.44%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AMAT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. AMAT currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AMAT is holding a Forward P/E ratio of 21.38. This valuation marks a discount compared to its industry's average Forward P/E of 23.27.
Also, we should mention that AMAT has a PEG ratio of 2.12. 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 was holding an average PEG ratio of 2.12 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% 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.
To follow AMAT in the coming trading sessions, be sure to utilize Zacks.com.