We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Applied Materials (AMAT) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Applied Materials (AMAT - Free Report) closed at $136.40 in the latest trading session, marking a +1.76% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 1.37%.
Coming into today, shares of the maker of chipmaking equipment had lost 3.51% in the past month. In that same time, the Computer and Technology sector gained 1.16%, while the S&P 500 gained 3.43%.
Applied Materials will be looking to display strength as it nears its next earnings release. In that report, analysts expect Applied Materials to post earnings of $1.73 per share. This would mark a year-over-year decline of 10.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.16 billion, down 5.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.34 per share and revenue of $25.39 billion, which would represent changes of -4.68% and -1.53%, respectively, from the prior year.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 18.26. This valuation marks a discount compared to its industry's average Forward P/E of 24.74.
Meanwhile, AMAT's PEG ratio is currently 3.4. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 3.4 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 70, putting it in the top 28% 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.
To follow AMAT in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Applied Materials (AMAT) Outpaces Stock Market Gains: What You Should Know
Applied Materials (AMAT - Free Report) closed at $136.40 in the latest trading session, marking a +1.76% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 1.37%.
Coming into today, shares of the maker of chipmaking equipment had lost 3.51% in the past month. In that same time, the Computer and Technology sector gained 1.16%, while the S&P 500 gained 3.43%.
Applied Materials will be looking to display strength as it nears its next earnings release. In that report, analysts expect Applied Materials to post earnings of $1.73 per share. This would mark a year-over-year decline of 10.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.16 billion, down 5.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.34 per share and revenue of $25.39 billion, which would represent changes of -4.68% and -1.53%, respectively, from the prior year.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 18.26. This valuation marks a discount compared to its industry's average Forward P/E of 24.74.
Meanwhile, AMAT's PEG ratio is currently 3.4. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 3.4 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 70, putting it in the top 28% 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.
To follow AMAT in the coming trading sessions, be sure to utilize Zacks.com.