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Applied Materials (AMAT) Outperforms Broader Market: What You Need to Know

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The latest trading session saw Applied Materials (AMAT - Free Report) ending at $183.38, denoting a +0.99% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 0.8%.

The maker of chipmaking equipment's shares have seen a decrease of 9.02% over the last month, not keeping up with the Computer and Technology sector's loss of 0.01% and the S&P 500's loss of 0.97%.

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 November 14, 2024. The company is expected to report EPS of $2.18, up 2.83% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.94 billion, reflecting a 3.22% rise from the equivalent quarter last year.

Any recent changes to analyst estimates for Applied Materials should also be noted by investors. Recent revisions tend to reflect the latest 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Applied Materials boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Applied Materials is currently exchanging hands at a Forward P/E ratio of 21.33. This signifies a discount in comparison to the average Forward P/E of 26.84 for its industry.

Investors should also note that AMAT has a PEG ratio of 2.48 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 2.21 as of yesterday's close.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 40% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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