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Applied Materials (AMAT) Outperforms Broader Market: What You Need to Know
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In the latest trading session, Applied Materials (AMAT - Free Report) closed at $173.89, marking a +1.75% move from the previous day. This move outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.24%.
Shares of the maker of chipmaking equipment witnessed a gain of 14.08% over the previous month, beating the performance of the Computer and Technology sector with its gain of 12.39% and the S&P 500's gain of 6.45%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is slated to reveal its earnings on February 15, 2024. On that day, Applied Materials is projected to report earnings of $1.90 per share, which would represent a year-over-year decline of 6.4%. Simultaneously, our latest consensus estimate expects the revenue to be $6.47 billion, showing a 3.95% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.61 per share and a revenue of $25.92 billion, demonstrating changes of -5.47% and -2.26%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.24% increase. Applied Materials is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Applied Materials is currently exchanging hands at a Forward P/E ratio of 22.47. This denotes a discount relative to the industry's average Forward P/E of 26.03.
It is also worth noting that AMAT currently has a PEG ratio of 3.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AMAT's industry had an average PEG ratio of 3.21 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Applied Materials (AMAT) Outperforms Broader Market: What You Need to Know
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $173.89, marking a +1.75% move from the previous day. This move outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.24%.
Shares of the maker of chipmaking equipment witnessed a gain of 14.08% over the previous month, beating the performance of the Computer and Technology sector with its gain of 12.39% and the S&P 500's gain of 6.45%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is slated to reveal its earnings on February 15, 2024. On that day, Applied Materials is projected to report earnings of $1.90 per share, which would represent a year-over-year decline of 6.4%. Simultaneously, our latest consensus estimate expects the revenue to be $6.47 billion, showing a 3.95% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.61 per share and a revenue of $25.92 billion, demonstrating changes of -5.47% and -2.26%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.24% increase. Applied Materials is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Applied Materials is currently exchanging hands at a Forward P/E ratio of 22.47. This denotes a discount relative to the industry's average Forward P/E of 26.03.
It is also worth noting that AMAT currently has a PEG ratio of 3.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AMAT's industry had an average PEG ratio of 3.21 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.