The Zacks Computer and Technology Sector has tumbled year-to-date, down a steep 20% and vastly underperforming the S&P 500. However, over the last month, the sector has tacked on a stellar 14%, outperforming the general market by a notable margin.

Below is a table illustrating the sector’s performance vs. the S&P 500 over several timeframes.

Image Source: Zacks Investment Research

A widely-recognized name in the space, Applied Materials (AMAT Quick QuoteAMAT - Free Report) , is on deck to reveal Q3 results on Thursday, August 18^th, after market close.

Applied Materials is one of the world’s largest equipment suppliers for the fabrication of semiconductors, flat panel liquid crystal displays (LCDs), and solar photovoltaic (PV) cells and modules.

How does the company shape up heading into the print? Let’s take a closer look.

Share Performance & Valuation

AMAT shares reside deep in the red year-to-date, down a sizable 30% and vastly underperforming the general market.

Image Source: Zacks Investment Research

Over the last month, however, the picture is vividly different – AMAT shares have tacked on a double-digit 17%, easily crushing the S&P 500’s gain of nearly 12%.

Image Source: Zacks Investment Research

Applied Materials carries rock-solid valuation levels; its 14.9X forward earnings multiple is a tick below its five-year median of 15.1X and represents a massive 41% discount relative to its Zacks Sector.

The company carries a Style Score of a C for Value.

Image Source: Zacks Investment Research

Quarterly Estimates

Analysts have been primarily quiet for the quarter to be reported, with just one downwards estimate revision coming in over the last 60 days. Still, the Zacks Consensus EPS Estimate of $1.78 reflects a 6% year-over-year decrease in quarterly earnings.

Image Source: Zacks Investment Research

However, the company’s top-line is forecasted to pencil in some growth – AMAT is forecasted to have generated $6.3 billion in revenue throughout the quarter, registering a marginal 1% year-over-year uptick.

Quarterly Performance & Market Reactions

The company has primarily reported bottom-line results above expectations, exceeding the Zacks Consensus EPS Estimate in six of its previous ten quarters. However, in its latest print, AMAT recorded a 2% bottom-line miss.

Quarterly revenue has also been reported repeatedly above expectations, with AMAT registering seven top-line beats over its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.

Image Source: Zacks Investment Research

Day-traders who prefer to play the long side beware – shares have moved downwards following each of AMAT’s last four quarterly prints.

Putting Everything Together

Applied Materials shares reside deep in the red year-to-date, but over the last month, shares have soared and easily outperformed the general market.

In addition, the company carries solid valuation levels, with shares trading just below their five-year median and representing a double-digit percentage discount relative to its sector.

Quarterly estimates reflect a declining bottom-line but an increasing top-line, and just one analyst has moved their earnings estimate for the quarter to be reported.

Furthermore, the company has consistently reported quarterly results above expectations, but the market has reacted poorly following its last four prints.

Heading into the release, Applied Materials (AMAT Quick QuoteAMAT - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of -1.7%.