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) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $138.16, marking a +0.15% move from the previous day. The stock lagged the S&P 500's daily gain of 0.75%.
Prior to today's trading, shares of the maker of chipmaking equipment had lost 1.21% over the past month. This has lagged the Computer and Technology sector's gain of 7.17% and the S&P 500's gain of 3.52% in that time.
AMAT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.76, up 66.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.92 billion, up 34.7% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $6.55 per share and revenue of $22.65 billion. These results would represent year-over-year changes of +57.07% and +31.67%, respectively.
Investors should also note any recent changes to analyst estimates for AMAT. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. AMAT is currently a Zacks Rank #2 (Buy).
Digging into valuation, AMAT currently has a Forward P/E ratio of 21.1. This valuation marks a premium compared to its industry's average Forward P/E of 20.3.
It is also worth noting that AMAT currently has a PEG ratio of 1.17. 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 1.17 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 87, which puts it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Applied Materials (AMAT) Gains But Lags Market: What You Should Know
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $138.16, marking a +0.15% move from the previous day. The stock lagged the S&P 500's daily gain of 0.75%.
Prior to today's trading, shares of the maker of chipmaking equipment had lost 1.21% over the past month. This has lagged the Computer and Technology sector's gain of 7.17% and the S&P 500's gain of 3.52% in that time.
AMAT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.76, up 66.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.92 billion, up 34.7% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $6.55 per share and revenue of $22.65 billion. These results would represent year-over-year changes of +57.07% and +31.67%, respectively.
Investors should also note any recent changes to analyst estimates for AMAT. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. AMAT is currently a Zacks Rank #2 (Buy).
Digging into valuation, AMAT currently has a Forward P/E ratio of 21.1. This valuation marks a premium compared to its industry's average Forward P/E of 20.3.
It is also worth noting that AMAT currently has a PEG ratio of 1.17. 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 1.17 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 87, which puts it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.