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Applied Materials (AMAT) Surpasses Market Returns: Some Facts Worth Knowing
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The latest trading session saw Applied Materials (AMAT - Free Report) ending at $132.35, denoting a +1.01% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.65%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.48%.
Shares of the maker of chipmaking equipment witnessed a loss of 6.08% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.93% and the S&P 500's loss of 2.79%.
Market participants will be closely following the financial results of Applied Materials in its upcoming release. The company is expected to report EPS of $1.98, down 2.46% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $6.52 billion, indicating a 3.35% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.90 per share and a revenue of $26.32 billion, signifying shifts of +2.6% and +2.06%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. As of now, Applied Materials holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Applied Materials is currently exchanging hands at a Forward P/E ratio of 16.58. This valuation marks a discount compared to its industry's average Forward P/E of 19.74.
We can additionally observe that AMAT currently boasts a PEG ratio of 2.97. 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 average PEG ratio for the Semiconductor Equipment - Wafer Fabrication industry stood at 2.97 at the close of the market yesterday.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 243, this industry ranks in the bottom 4% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Applied Materials (AMAT) Surpasses Market Returns: Some Facts Worth Knowing
The latest trading session saw Applied Materials (AMAT - Free Report) ending at $132.35, denoting a +1.01% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.65%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.48%.
Shares of the maker of chipmaking equipment witnessed a loss of 6.08% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.93% and the S&P 500's loss of 2.79%.
Market participants will be closely following the financial results of Applied Materials in its upcoming release. The company is expected to report EPS of $1.98, down 2.46% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $6.52 billion, indicating a 3.35% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.90 per share and a revenue of $26.32 billion, signifying shifts of +2.6% and +2.06%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. As of now, Applied Materials holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Applied Materials is currently exchanging hands at a Forward P/E ratio of 16.58. This valuation marks a discount compared to its industry's average Forward P/E of 19.74.
We can additionally observe that AMAT currently boasts a PEG ratio of 2.97. 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 average PEG ratio for the Semiconductor Equipment - Wafer Fabrication industry stood at 2.97 at the close of the market yesterday.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 243, this industry ranks in the bottom 4% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.