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Here's Why Applied Materials (AMAT) Fell More Than Broader Market
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In the latest market close, Applied Materials (AMAT - Free Report) reached $178.80, with a -0.86% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.76% for the day. Elsewhere, the Dow saw a downswing of 0.28%, while the tech-heavy Nasdaq depreciated by 1.2%.
Heading into today, shares of the maker of chipmaking equipment had gained 6.05% over the past month, outpacing the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 2.71% in that time.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 13, 2025. In that report, analysts expect Applied Materials to post earnings of $2.28 per share. This would mark year-over-year growth of 7.04%. At the same time, our most recent consensus estimate is projecting a revenue of $7.16 billion, reflecting a 6.74% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.38 per share and a revenue of $29.34 billion, representing changes of +8.44% and +7.97%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 past month, the Zacks Consensus EPS estimate has moved 0.08% higher. Applied Materials presently features a Zacks Rank of #4 (Sell).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 19.23. This valuation marks a discount compared to its industry's average Forward P/E of 25.37.
We can also see that AMAT currently has a PEG ratio of 1.84. 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. AMAT's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Here's Why Applied Materials (AMAT) Fell More Than Broader Market
In the latest market close, Applied Materials (AMAT - Free Report) reached $178.80, with a -0.86% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.76% for the day. Elsewhere, the Dow saw a downswing of 0.28%, while the tech-heavy Nasdaq depreciated by 1.2%.
Heading into today, shares of the maker of chipmaking equipment had gained 6.05% over the past month, outpacing the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 2.71% in that time.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 13, 2025. In that report, analysts expect Applied Materials to post earnings of $2.28 per share. This would mark year-over-year growth of 7.04%. At the same time, our most recent consensus estimate is projecting a revenue of $7.16 billion, reflecting a 6.74% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.38 per share and a revenue of $29.34 billion, representing changes of +8.44% and +7.97%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 past month, the Zacks Consensus EPS estimate has moved 0.08% higher. Applied Materials presently features a Zacks Rank of #4 (Sell).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 19.23. This valuation marks a discount compared to its industry's average Forward P/E of 25.37.
We can also see that AMAT currently has a PEG ratio of 1.84. 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. AMAT's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.