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Applied Materials (AMAT) Advances While Market Declines: Some Information for Investors
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In the latest trading session, Applied Materials (AMAT - Free Report) closed at $326.95, marking a +2.47% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.06%. Elsewhere, the Dow saw a downswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.06%.
Shares of the maker of chipmaking equipment have appreciated by 25.87% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.88%, and the S&P 500's gain of 1.99%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is expected to report EPS of $2.21, down 7.14% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.86 billion, reflecting a 4.34% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.57 per share and revenue of $29.01 billion, indicating changes of +1.59% and +2.26%, 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. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. Applied Materials is currently a Zacks Rank #3 (Hold).
In the context of valuation, Applied Materials is at present trading with a Forward P/E ratio of 33.35. This signifies a discount in comparison to the average Forward P/E of 36.82 for its industry.
Meanwhile, AMAT's PEG ratio is currently 3.3. 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. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.98 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Applied Materials (AMAT) Advances While Market Declines: Some Information for Investors
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $326.95, marking a +2.47% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.06%. Elsewhere, the Dow saw a downswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.06%.
Shares of the maker of chipmaking equipment have appreciated by 25.87% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.88%, and the S&P 500's gain of 1.99%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is expected to report EPS of $2.21, down 7.14% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.86 billion, reflecting a 4.34% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.57 per share and revenue of $29.01 billion, indicating changes of +1.59% and +2.26%, 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. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. Applied Materials is currently a Zacks Rank #3 (Hold).
In the context of valuation, Applied Materials is at present trading with a Forward P/E ratio of 33.35. This signifies a discount in comparison to the average Forward P/E of 36.82 for its industry.
Meanwhile, AMAT's PEG ratio is currently 3.3. 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. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.98 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.