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Applied Materials (AMAT) Gains As Market Dips: What You Should Know
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In the latest trading session, Applied Materials (AMAT - Free Report) closed at $136.13, marking a +0.41% move from the previous day. This move outpaced the S&P 500's daily loss of 0.37%.
Heading into today, shares of the maker of chipmaking equipment had lost 10.11% over the past month, lagging the Computer and Technology sector's loss of 8.73% and the S&P 500's loss of 6.01% in that time.
Investors will be hoping for strength from Applied Materials as it approaches its next earnings release, which is expected to be February 16, 2022. The company is expected to report EPS of $1.85, up 33.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.17 billion, up 19.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.15 per share and revenue of $26.54 billion, which would represent changes of +19.15% and +15.08%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Applied Materials. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% higher. Applied Materials currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Applied Materials is currently trading at a Forward P/E ratio of 16.64. This valuation marks a discount compared to its industry's average Forward P/E of 17.16.
Also, we should mention that AMAT has a PEG ratio of 1.42. 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 1.42 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Applied Materials (AMAT) Gains As Market Dips: What You Should Know
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $136.13, marking a +0.41% move from the previous day. This move outpaced the S&P 500's daily loss of 0.37%.
Heading into today, shares of the maker of chipmaking equipment had lost 10.11% over the past month, lagging the Computer and Technology sector's loss of 8.73% and the S&P 500's loss of 6.01% in that time.
Investors will be hoping for strength from Applied Materials as it approaches its next earnings release, which is expected to be February 16, 2022. The company is expected to report EPS of $1.85, up 33.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.17 billion, up 19.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.15 per share and revenue of $26.54 billion, which would represent changes of +19.15% and +15.08%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Applied Materials. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% higher. Applied Materials currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Applied Materials is currently trading at a Forward P/E ratio of 16.64. This valuation marks a discount compared to its industry's average Forward P/E of 17.16.
Also, we should mention that AMAT has a PEG ratio of 1.42. 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 1.42 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.