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Applied Materials (AMAT) Stock Slides as Market Rises: Facts to Know Before You Trade
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In the latest market close, Applied Materials (AMAT - Free Report) reached $167.05, with a -0.74% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.43%.
Coming into today, shares of the maker of chipmaking equipment had gained 3.86% in the past month. In that same time, the Computer and Technology sector gained 3.67%, while the S&P 500 gained 2.08%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. It is anticipated that the company will report an EPS of $1.89, marking a 6.9% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.47 billion, reflecting a 3.96% fall from the equivalent quarter last year.
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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Materials. These recent revisions tend to reflect the evolving nature of short-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. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. 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 22.4. Its industry sports an average Forward P/E of 26.32, so one might conclude that Applied Materials is trading at a discount comparatively.
Also, we should mention that AMAT has a PEG ratio of 2.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 3.65.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 55, finds itself in the top 22% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest market close, Applied Materials (AMAT - Free Report) reached $167.05, with a -0.74% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.43%.
Coming into today, shares of the maker of chipmaking equipment had gained 3.86% in the past month. In that same time, the Computer and Technology sector gained 3.67%, while the S&P 500 gained 2.08%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. It is anticipated that the company will report an EPS of $1.89, marking a 6.9% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.47 billion, reflecting a 3.96% fall from the equivalent quarter last year.
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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Materials. These recent revisions tend to reflect the evolving nature of short-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. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. 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 22.4. Its industry sports an average Forward P/E of 26.32, so one might conclude that Applied Materials is trading at a discount comparatively.
Also, we should mention that AMAT has a PEG ratio of 2.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 3.65.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 55, finds itself in the top 22% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.