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Applied Materials (AMAT) Suffers a Larger Drop Than the General Market: Key Insights
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Applied Materials (AMAT - Free Report) closed at $650.91 in the latest trading session, marking a -9.97% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.66%.
The stock of maker of chipmaking equipment has risen by 47.54% in the past month, leading the Computer and Technology sector's loss of 2.58% and the S&P 500's loss of 1.21%.
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 13, 2026. It is anticipated that the company will report an EPS of $3.35, marking a 35.08% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.98 billion, up 23% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.11 per share and revenue of $33.29 billion. These totals would mark changes of +28.56% and +17.34%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Applied Materials. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.71% higher. Currently, Applied Materials is carrying a Zacks Rank of #2 (Buy).
Looking at valuation, Applied Materials is presently trading at a Forward P/E ratio of 59.72. This represents no noticeable deviation compared to its industry average Forward P/E of 59.72.
One should further note that AMAT currently holds a PEG ratio of 2.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 2.2.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Applied Materials (AMAT) Suffers a Larger Drop Than the General Market: Key Insights
Applied Materials (AMAT - Free Report) closed at $650.91 in the latest trading session, marking a -9.97% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.66%.
The stock of maker of chipmaking equipment has risen by 47.54% in the past month, leading the Computer and Technology sector's loss of 2.58% and the S&P 500's loss of 1.21%.
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 13, 2026. It is anticipated that the company will report an EPS of $3.35, marking a 35.08% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.98 billion, up 23% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.11 per share and revenue of $33.29 billion. These totals would mark changes of +28.56% and +17.34%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Applied Materials. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.71% higher. Currently, Applied Materials is carrying a Zacks Rank of #2 (Buy).
Looking at valuation, Applied Materials is presently trading at a Forward P/E ratio of 59.72. This represents no noticeable deviation compared to its industry average Forward P/E of 59.72.
One should further note that AMAT currently holds a PEG ratio of 2.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 2.2.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.