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Applied Materials (AMAT) Outpaces Stock Market Gains: What You Should Know

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Applied Materials (AMAT - Free Report) closed the most recent trading day at $540.04, moving +2.03% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.19%.

Heading into today, shares of the maker of chipmaking equipment had gained 21.42% over the past month, outpacing the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.

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 November 12, 2026. On that day, Applied Materials is projected to report earnings of $4.06 per share, which would represent year-over-year growth of 87.1%. Simultaneously, our latest consensus estimate expects the revenue to be $10.3 billion, showing a 51.4% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.79 per share and a revenue of $34.25 billion, representing changes of +35.77% and +20.72%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.16% rise in the Zacks Consensus EPS estimate. Currently, Applied Materials is carrying a Zacks Rank of #2 (Buy).

From a valuation perspective, Applied Materials is currently exchanging hands at a Forward P/E ratio of 41.39. This expresses a premium compared to the average Forward P/E of 39.71 of its industry.

Meanwhile, AMAT's PEG ratio is currently 1.47. 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. AMAT's industry had an average PEG ratio of 1.35 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 29% of over 250 industries.

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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