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Applied Materials (AMAT) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest close session, Applied Materials (AMAT - Free Report) was down 1.29% at $292.20. The stock fell short of the S&P 500, which registered a loss of 0.34% for the day. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, added 0.16%.
The maker of chipmaking equipment's shares have seen an increase of 10.81% over the last month, surpassing the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company's earnings per share (EPS) are projected to be $2.21, reflecting a 7.14% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.86 billion, indicating a 4.34% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.55 per share and revenue of $28.97 billion, indicating changes of +1.38% and +2.11%, respectively, compared to the previous year.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Applied Materials is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 30.98 right now. This expresses a discount compared to the average Forward P/E of 34.87 of its industry.
It is also worth noting that AMAT currently has a PEG ratio of 3.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.98.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 43% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AMAT in the coming trading sessions, be sure to utilize Zacks.com.
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Applied Materials (AMAT) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest close session, Applied Materials (AMAT - Free Report) was down 1.29% at $292.20. The stock fell short of the S&P 500, which registered a loss of 0.34% for the day. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, added 0.16%.
The maker of chipmaking equipment's shares have seen an increase of 10.81% over the last month, surpassing the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company's earnings per share (EPS) are projected to be $2.21, reflecting a 7.14% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.86 billion, indicating a 4.34% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.55 per share and revenue of $28.97 billion, indicating changes of +1.38% and +2.11%, respectively, compared to the previous year.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Applied Materials is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 30.98 right now. This expresses a discount compared to the average Forward P/E of 34.87 of its industry.
It is also worth noting that AMAT currently has a PEG ratio of 3.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.98.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 43% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AMAT in the coming trading sessions, be sure to utilize Zacks.com.