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Applied Materials (AMAT - Free Report) closed the most recent trading day at $134.90, moving +0.5% from the previous trading session. This move lagged the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.93%.
Prior to today's trading, shares of the maker of chipmaking equipment had lost 1.73% over the past month. This has lagged the Computer and Technology sector's loss of 0.22% and was narrower than the S&P 500's loss of 2.29% in that time.
Market participants will be closely following the financial results of Applied Materials in its upcoming release. 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, down 3.35% from the year-ago period.
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 +2.06%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Applied Materials. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. As of now, Applied Materials holds a Zacks Rank of #2 (Buy).
In terms of valuation, Applied Materials is presently being traded at a Forward P/E ratio of 16.99. This signifies a discount in comparison to the average Forward P/E of 20.32 for its industry.
Also, we should mention that AMAT has a PEG ratio of 3.04. 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. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 3.04.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 198, finds itself in the bottom 22% echelons of all 250+ industries.
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 Yet Lags Behind Market: Some Facts Worth Knowing
Applied Materials (AMAT - Free Report) closed the most recent trading day at $134.90, moving +0.5% from the previous trading session. This move lagged the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.93%.
Prior to today's trading, shares of the maker of chipmaking equipment had lost 1.73% over the past month. This has lagged the Computer and Technology sector's loss of 0.22% and was narrower than the S&P 500's loss of 2.29% in that time.
Market participants will be closely following the financial results of Applied Materials in its upcoming release. 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, down 3.35% from the year-ago period.
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 +2.06%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Applied Materials. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. As of now, Applied Materials holds a Zacks Rank of #2 (Buy).
In terms of valuation, Applied Materials is presently being traded at a Forward P/E ratio of 16.99. This signifies a discount in comparison to the average Forward P/E of 20.32 for its industry.
Also, we should mention that AMAT has a PEG ratio of 3.04. 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. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 3.04.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 198, finds itself in the bottom 22% echelons of all 250+ industries.
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.