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Applied Materials (AMAT) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Applied Materials (AMAT - Free Report) closed at $162.07, marking a -0.64% move from the previous day. This move lagged the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq lost 0.56%.
Shares of the maker of chipmaking equipment have appreciated by 8.91% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.68% and the S&P 500's gain of 5.24%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is predicted to post an EPS of $1.89, indicating a 6.9% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.47 billion, indicating a 3.96% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.51 per share and a revenue of $25.88 billion, representing changes of -6.71% and -2.4%, respectively, from the prior year.
Investors should also take note of any recent adjustments 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% decrease. At present, Applied Materials boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 21.71 right now. This indicates a discount in contrast to its industry's Forward P/E of 25.94.
It is also worth noting that AMAT currently has a PEG ratio of 2.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.84 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Applied Materials (AMAT) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $162.07, marking a -0.64% move from the previous day. This move lagged the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq lost 0.56%.
Shares of the maker of chipmaking equipment have appreciated by 8.91% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.68% and the S&P 500's gain of 5.24%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is predicted to post an EPS of $1.89, indicating a 6.9% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.47 billion, indicating a 3.96% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.51 per share and a revenue of $25.88 billion, representing changes of -6.71% and -2.4%, respectively, from the prior year.
Investors should also take note of any recent adjustments 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% decrease. At present, Applied Materials boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 21.71 right now. This indicates a discount in contrast to its industry's Forward P/E of 25.94.
It is also worth noting that AMAT currently has a PEG ratio of 2.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.84 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.