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Applied Materials (AMAT) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Applied Materials (AMAT - Free Report) closed at $113.80, marking a +0.73% move from the previous day. This move outpaced the S&P 500's daily gain of 0.48%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.19%.
Heading into today, shares of the maker of chipmaking equipment had lost 12.72% over the past month, lagging the Computer and Technology sector's loss of 11.75% and the S&P 500's loss of 8.48% in that time.
Applied Materials will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.89, up 15.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.35 billion, up 13.78% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $8.02 per share and revenue of $26.46 billion. These results would represent year-over-year changes of +17.25% and +14.73%, respectively.
Investors should also note any 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.
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.
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 0.49% lower. Applied Materials is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 14.09. This valuation marks a discount compared to its industry's average Forward P/E of 15.37.
Meanwhile, AMAT's PEG ratio is currently 1.4. 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 1.4 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 195, which puts it in the bottom 23% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Applied Materials (AMAT) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $113.80, marking a +0.73% move from the previous day. This move outpaced the S&P 500's daily gain of 0.48%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.19%.
Heading into today, shares of the maker of chipmaking equipment had lost 12.72% over the past month, lagging the Computer and Technology sector's loss of 11.75% and the S&P 500's loss of 8.48% in that time.
Applied Materials will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.89, up 15.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.35 billion, up 13.78% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $8.02 per share and revenue of $26.46 billion. These results would represent year-over-year changes of +17.25% and +14.73%, respectively.
Investors should also note any 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.
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.
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 0.49% lower. Applied Materials is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 14.09. This valuation marks a discount compared to its industry's average Forward P/E of 15.37.
Meanwhile, AMAT's PEG ratio is currently 1.4. 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 1.4 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 195, which puts it in the bottom 23% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.