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Here's Why Applied Materials (AMAT) Fell More Than Broader Market
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Applied Materials (AMAT - Free Report) ended the recent trading session at $149.31, demonstrating a -1.41% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.34%. Elsewhere, the Dow saw an upswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.56%.
Shares of the maker of chipmaking equipment have appreciated by 4.66% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 2.56%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.89, signifying a 6.9% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.47 billion, showing a 3.96% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.51 per share and revenue of $25.88 billion, indicating changes of -6.71% and -2.4%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% increase. As of now, Applied Materials holds a Zacks Rank of #3 (Hold).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 20.16. This denotes a discount relative to the industry's average Forward P/E of 23.45.
Investors should also note that AMAT has a PEG ratio of 2.6 right now. 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. AMAT's industry had an average PEG ratio of 3.39 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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Here's Why Applied Materials (AMAT) Fell More Than Broader Market
Applied Materials (AMAT - Free Report) ended the recent trading session at $149.31, demonstrating a -1.41% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.34%. Elsewhere, the Dow saw an upswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.56%.
Shares of the maker of chipmaking equipment have appreciated by 4.66% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 2.56%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.89, signifying a 6.9% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.47 billion, showing a 3.96% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.51 per share and revenue of $25.88 billion, indicating changes of -6.71% and -2.4%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% increase. As of now, Applied Materials holds a Zacks Rank of #3 (Hold).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 20.16. This denotes a discount relative to the industry's average Forward P/E of 23.45.
Investors should also note that AMAT has a PEG ratio of 2.6 right now. 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. AMAT's industry had an average PEG ratio of 3.39 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.