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Applied Materials (AMAT) Rises But Trails Market: What Investors Should Know
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Applied Materials (AMAT - Free Report) closed the most recent trading day at $140.29, moving +0.73% from the previous trading session. This change lagged the S&P 500's 1.18% gain on the day. Elsewhere, the Dow saw an upswing of 0.87%, while the tech-heavy Nasdaq appreciated by 1.6%.
Heading into today, shares of the maker of chipmaking equipment had lost 6.04% over the past month, lagging the Computer and Technology sector's loss of 5.27% and the S&P 500's loss of 5.17% in that time.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.98, showcasing a 2.46% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.52 billion, indicating a 3.33% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.90 per share and revenue of $26.32 billion, which would represent changes of +2.6% and +2.07%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.7% upward. At present, Applied Materials boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Applied Materials is presently trading at a Forward P/E ratio of 17.63. This valuation marks a discount compared to its industry's average Forward P/E of 21.97.
Meanwhile, AMAT's PEG ratio is currently 2.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 2.89 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 16, this industry ranks in the top 7% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Applied Materials (AMAT) Rises But Trails Market: What Investors Should Know
Applied Materials (AMAT - Free Report) closed the most recent trading day at $140.29, moving +0.73% from the previous trading session. This change lagged the S&P 500's 1.18% gain on the day. Elsewhere, the Dow saw an upswing of 0.87%, while the tech-heavy Nasdaq appreciated by 1.6%.
Heading into today, shares of the maker of chipmaking equipment had lost 6.04% over the past month, lagging the Computer and Technology sector's loss of 5.27% and the S&P 500's loss of 5.17% in that time.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.98, showcasing a 2.46% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.52 billion, indicating a 3.33% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.90 per share and revenue of $26.32 billion, which would represent changes of +2.6% and +2.07%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.7% upward. At present, Applied Materials boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Applied Materials is presently trading at a Forward P/E ratio of 17.63. This valuation marks a discount compared to its industry's average Forward P/E of 21.97.
Meanwhile, AMAT's PEG ratio is currently 2.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 2.89 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 16, this industry ranks in the top 7% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.