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Applied Materials (AMAT) Gains But Lags Market: What You Should Know
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In the latest trading session, Applied Materials (AMAT - Free Report) closed at $113.47, marking a +0.27% move from the previous day. The stock lagged the S&P 500's daily gain of 1.33%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 2.94%.
Heading into today, shares of the maker of chipmaking equipment had lost 4.49% over the past month, lagging the Computer and Technology sector's gain of 8.77% and the S&P 500's gain of 6.11% in that time.
Wall Street will be looking for positivity from Applied Materials as it approaches its next earnings report date. On that day, Applied Materials is projected to report earnings of $1.84 per share, which would represent a year-over-year decline of 0.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.4 billion, up 2.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.01 per share and revenue of $24.56 billion, which would represent changes of -8.96% and -4.76%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Applied Materials. 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. 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 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. Applied Materials is currently a Zacks Rank #3 (Hold).
In terms of valuation, Applied Materials is currently trading at a Forward P/E ratio of 16.15. This represents a discount compared to its industry's average Forward P/E of 18.1.
We can also see that AMAT currently has a PEG ratio of 2.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 2.89 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% 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.
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Applied Materials (AMAT) Gains But Lags Market: What You Should Know
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $113.47, marking a +0.27% move from the previous day. The stock lagged the S&P 500's daily gain of 1.33%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 2.94%.
Heading into today, shares of the maker of chipmaking equipment had lost 4.49% over the past month, lagging the Computer and Technology sector's gain of 8.77% and the S&P 500's gain of 6.11% in that time.
Wall Street will be looking for positivity from Applied Materials as it approaches its next earnings report date. On that day, Applied Materials is projected to report earnings of $1.84 per share, which would represent a year-over-year decline of 0.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.4 billion, up 2.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.01 per share and revenue of $24.56 billion, which would represent changes of -8.96% and -4.76%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Applied Materials. 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. 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 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. Applied Materials is currently a Zacks Rank #3 (Hold).
In terms of valuation, Applied Materials is currently trading at a Forward P/E ratio of 16.15. This represents a discount compared to its industry's average Forward P/E of 18.1.
We can also see that AMAT currently has a PEG ratio of 2.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 2.89 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% 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.