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Applied Materials (AMAT) Stock Moves -0.55%: What You Should Know

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Applied Materials (AMAT - Free Report) ended the recent trading session at $209.25, demonstrating a -0.55% swing from the preceding day's closing price. This change was narrower than the S&P 500's 0.95% loss on the day. Meanwhile, the Dow lost 1.09%, and the Nasdaq, a tech-heavy index, lost 0.84%.

The maker of chipmaking equipment's shares have seen an increase of 2.67% over the last month, surpassing the Computer and Technology sector's gain of 1.67% and the S&P 500's gain of 1.78%.

The upcoming earnings release of Applied Materials will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.96, reflecting a 2% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.51 billion, indicating a 1.74% decrease compared to the same quarter of the previous year.

AMAT's full-year Zacks Consensus Estimates are calling for earnings of $8.03 per share and revenue of $26.49 billion. These results would represent year-over-year changes of -0.25% and -0.1%, respectively.

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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Applied Materials boasts a Zacks Rank of #2 (Buy).

In the context of valuation, Applied Materials is at present trading with a Forward P/E ratio of 26.19. This denotes a discount relative to the industry's average Forward P/E of 30.92.

We can also see that AMAT currently has a PEG ratio of 3.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 3.01.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.

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.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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