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Applied Materials (AMAT) Laps the Stock Market: Here's Why
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Applied Materials (AMAT - Free Report) closed the most recent trading day at $192.61, moving +1.14% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.14%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 12.38% outpaced the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.34, signifying a 10.38% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7.2 billion, up 6.23% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.47 per share and revenue of $28.82 billion, indicating changes of +9.48% and +6.04%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. Right now, Applied Materials possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 20.11 right now. This denotes a discount relative to the industry average Forward P/E of 27.61.
It is also worth noting that AMAT currently has a PEG ratio of 2.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.61.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Applied Materials (AMAT) Laps the Stock Market: Here's Why
Applied Materials (AMAT - Free Report) closed the most recent trading day at $192.61, moving +1.14% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.14%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 12.38% outpaced the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.34, signifying a 10.38% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7.2 billion, up 6.23% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.47 per share and revenue of $28.82 billion, indicating changes of +9.48% and +6.04%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. Right now, Applied Materials possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 20.11 right now. This denotes a discount relative to the industry average Forward P/E of 27.61.
It is also worth noting that AMAT currently has a PEG ratio of 2.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.61.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.