We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Applied Materials (AMAT) Rises As Market Takes a Dip: Key Facts
Read MoreHide Full Article
Applied Materials (AMAT - Free Report) ended the recent trading session at $194.99, demonstrating a +2.21% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq increased by 0.03%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 12.36% outpaced the Computer and Technology sector's gain of 5.58% and the S&P 500's gain of 3.94%.
The investment community will be closely monitoring the performance of Applied Materials in its forthcoming earnings report. On that day, Applied Materials is projected to report earnings of $2.34 per share, which would represent year-over-year growth of 10.38%. Meanwhile, the latest consensus estimate predicts the revenue to be $7.2 billion, indicating a 6.23% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.47 per share and revenue of $28.82 billion. These totals would mark changes of +9.48% and +6.04%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Applied Materials. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 0.03% increase. Currently, Applied Materials is carrying a Zacks Rank of #3 (Hold).
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 20.14. This indicates a discount in contrast to its industry's Forward P/E of 27.61.
We can additionally observe that AMAT currently boasts a PEG ratio of 2.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 1.62.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 35% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Applied Materials (AMAT) Rises As Market Takes a Dip: Key Facts
Applied Materials (AMAT - Free Report) ended the recent trading session at $194.99, demonstrating a +2.21% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq increased by 0.03%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 12.36% outpaced the Computer and Technology sector's gain of 5.58% and the S&P 500's gain of 3.94%.
The investment community will be closely monitoring the performance of Applied Materials in its forthcoming earnings report. On that day, Applied Materials is projected to report earnings of $2.34 per share, which would represent year-over-year growth of 10.38%. Meanwhile, the latest consensus estimate predicts the revenue to be $7.2 billion, indicating a 6.23% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.47 per share and revenue of $28.82 billion. These totals would mark changes of +9.48% and +6.04%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Applied Materials. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 0.03% increase. Currently, Applied Materials is carrying a Zacks Rank of #3 (Hold).
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 20.14. This indicates a discount in contrast to its industry's Forward P/E of 27.61.
We can additionally observe that AMAT currently boasts a PEG ratio of 2.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 1.62.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 35% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.