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Why Applied Materials (AMAT) Outpaced the Stock Market Today
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In the latest close session, Applied Materials (AMAT - Free Report) was up +2.48% at $190.29. This move outpaced the S&P 500's daily gain of 0.02%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 0.33%.
The maker of chipmaking equipment's shares have seen an increase of 1.35% over the last month, not keeping up with the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.93%.
The investment community will be closely monitoring the performance of Applied Materials in its forthcoming earnings report. The company is scheduled to release its earnings on August 14, 2025. The company's earnings per share (EPS) are projected to be $2.34, reflecting a 10.38% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.2 billion, showing a 6.23% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.47 per share and revenue of $28.82 billion, which would represent changes of +9.48% and +6.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Applied Materials. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, Applied Materials is currently being traded at a Forward P/E ratio of 19.6. This signifies a discount in comparison to the average Forward P/E of 26.57 for its industry.
We can also see that AMAT currently has a PEG ratio of 2.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Semiconductors industry had an average PEG ratio of 1.61 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 27% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why Applied Materials (AMAT) Outpaced the Stock Market Today
In the latest close session, Applied Materials (AMAT - Free Report) was up +2.48% at $190.29. This move outpaced the S&P 500's daily gain of 0.02%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 0.33%.
The maker of chipmaking equipment's shares have seen an increase of 1.35% over the last month, not keeping up with the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.93%.
The investment community will be closely monitoring the performance of Applied Materials in its forthcoming earnings report. The company is scheduled to release its earnings on August 14, 2025. The company's earnings per share (EPS) are projected to be $2.34, reflecting a 10.38% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.2 billion, showing a 6.23% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.47 per share and revenue of $28.82 billion, which would represent changes of +9.48% and +6.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Applied Materials. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, Applied Materials is currently being traded at a Forward P/E ratio of 19.6. This signifies a discount in comparison to the average Forward P/E of 26.57 for its industry.
We can also see that AMAT currently has a PEG ratio of 2.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Semiconductors industry had an average PEG ratio of 1.61 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 27% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.