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Applied Materials (AMAT) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Applied Materials (AMAT - Free Report) closed at $126.76, marking a -0.58% move from the previous day. This change lagged the S&P 500's daily loss of 0.24%.
Coming into today, shares of the maker of chipmaking equipment had lost 8.56% in the past month. In that same time, the Computer and Technology sector lost 5.49%, while the S&P 500 lost 2.12%.
AMAT will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMAT to post earnings of $1.94 per share. This would mark year-over-year growth of 55.2%. Our most recent consensus estimate is calling for quarterly revenue of $6.33 billion, up 35.04% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $6.84 per share and revenue of $23.27 billion. These results would represent year-over-year changes of +64.03% and +35.27%, respectively.
It is also important to note the recent changes to analyst estimates for AMAT. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AMAT is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, AMAT currently has a Forward P/E ratio of 18.64. Its industry sports an average Forward P/E of 18.9, so we one might conclude that AMAT is trading at a discount comparatively.
We can also see that AMAT currently has a PEG ratio of 0.96. 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. AMAT's industry had an average PEG ratio of 0.97 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Applied Materials (AMAT) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $126.76, marking a -0.58% move from the previous day. This change lagged the S&P 500's daily loss of 0.24%.
Coming into today, shares of the maker of chipmaking equipment had lost 8.56% in the past month. In that same time, the Computer and Technology sector lost 5.49%, while the S&P 500 lost 2.12%.
AMAT will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMAT to post earnings of $1.94 per share. This would mark year-over-year growth of 55.2%. Our most recent consensus estimate is calling for quarterly revenue of $6.33 billion, up 35.04% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $6.84 per share and revenue of $23.27 billion. These results would represent year-over-year changes of +64.03% and +35.27%, respectively.
It is also important to note the recent changes to analyst estimates for AMAT. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AMAT is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, AMAT currently has a Forward P/E ratio of 18.64. Its industry sports an average Forward P/E of 18.9, so we one might conclude that AMAT is trading at a discount comparatively.
We can also see that AMAT currently has a PEG ratio of 0.96. 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. AMAT's industry had an average PEG ratio of 0.97 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.