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Applied Materials (AMAT) Stock Sinks As Market Gains: Here's Why
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The latest trading session saw Applied Materials (AMAT - Free Report) ending at $192.03, denoting a -1.06% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 0.09%.
The the stock of maker of chipmaking equipment has fallen by 4.84% in the past month, lagging the Computer and Technology sector's gain of 7.11% and the S&P 500's gain of 4.9%.
Analysts and investors alike will be keeping a close eye on the performance of Applied Materials in its upcoming earnings disclosure. The company's earnings report is set to go public on November 14, 2024. It is anticipated that the company will report an EPS of $2.18, marking a 2.83% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.94 billion, up 3.22% from the year-ago period.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.74% decrease. Applied Materials presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Applied Materials is at present trading with a Forward P/E ratio of 20.34. Its industry sports an average Forward P/E of 27.56, so one might conclude that Applied Materials is trading at a discount comparatively.
We can also see that AMAT currently has a PEG ratio of 2.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 2.17 as trading concluded yesterday.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 176, positioning it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Applied Materials (AMAT) Stock Sinks As Market Gains: Here's Why
The latest trading session saw Applied Materials (AMAT - Free Report) ending at $192.03, denoting a -1.06% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 0.09%.
The the stock of maker of chipmaking equipment has fallen by 4.84% in the past month, lagging the Computer and Technology sector's gain of 7.11% and the S&P 500's gain of 4.9%.
Analysts and investors alike will be keeping a close eye on the performance of Applied Materials in its upcoming earnings disclosure. The company's earnings report is set to go public on November 14, 2024. It is anticipated that the company will report an EPS of $2.18, marking a 2.83% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.94 billion, up 3.22% from the year-ago period.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.74% decrease. Applied Materials presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Applied Materials is at present trading with a Forward P/E ratio of 20.34. Its industry sports an average Forward P/E of 27.56, so one might conclude that Applied Materials is trading at a discount comparatively.
We can also see that AMAT currently has a PEG ratio of 2.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 2.17 as trading concluded yesterday.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 176, positioning it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.