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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 the most recent trading day at $142, moving -0.46% from the previous trading session. This change lagged the S&P 500's 0.09% loss on the day.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 5.74% over the past month. This has outpaced the Computer and Technology sector's gain of 2.73% and the S&P 500's gain of 2.28% in that time.
AMAT will be looking to display strength as it nears its next earnings release, which is expected to be August 19, 2021. The company is expected to report EPS of $1.76, up 66.04% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.92 billion, up 34.7% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.55 per share and revenue of $22.65 billion. These totals would mark changes of +57.07% and +31.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AMAT. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AMAT currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AMAT is currently trading at a Forward P/E ratio of 21.79. For comparison, its industry has an average Forward P/E of 20.58, which means AMAT is trading at a premium to the group.
Investors should also note that AMAT has a PEG ratio of 1.21 right now. 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. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.21 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% 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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Applied Materials (AMAT) Dips More Than Broader Markets: What You Should Know
Applied Materials (AMAT - Free Report) closed the most recent trading day at $142, moving -0.46% from the previous trading session. This change lagged the S&P 500's 0.09% loss on the day.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 5.74% over the past month. This has outpaced the Computer and Technology sector's gain of 2.73% and the S&P 500's gain of 2.28% in that time.
AMAT will be looking to display strength as it nears its next earnings release, which is expected to be August 19, 2021. The company is expected to report EPS of $1.76, up 66.04% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.92 billion, up 34.7% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.55 per share and revenue of $22.65 billion. These totals would mark changes of +57.07% and +31.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AMAT. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AMAT currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AMAT is currently trading at a Forward P/E ratio of 21.79. For comparison, its industry has an average Forward P/E of 20.58, which means AMAT is trading at a premium to the group.
Investors should also note that AMAT has a PEG ratio of 1.21 right now. 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. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.21 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% 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.