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Applied Materials (AMAT) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, Applied Materials (AMAT - Free Report) closed at $387.59, marking a +2.74% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.7%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.83%.
Shares of the maker of chipmaking equipment have depreciated by 22.22% over the course of the past month, underperforming the Computer and Technology sector's loss of 7.7%, 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 November 12, 2026. The company is forecasted to report an EPS of $4.06, showcasing a 87.1% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $10.3 billion, up 51.4% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.79 per share and revenue of $34.25 billion, indicating changes of +35.77% and +20.72%, 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. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Applied Materials possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Applied Materials is at present trading with a Forward P/E ratio of 29.5. This valuation marks a discount compared to its industry average Forward P/E of 29.83.
One should further note that AMAT currently holds a PEG ratio of 1.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.04.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 38% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Applied Materials (AMAT) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Applied Materials (AMAT - Free Report) closed at $387.59, marking a +2.74% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.7%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.83%.
Shares of the maker of chipmaking equipment have depreciated by 22.22% over the course of the past month, underperforming the Computer and Technology sector's loss of 7.7%, 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 November 12, 2026. The company is forecasted to report an EPS of $4.06, showcasing a 87.1% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $10.3 billion, up 51.4% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.79 per share and revenue of $34.25 billion, indicating changes of +35.77% and +20.72%, 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. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Applied Materials possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Applied Materials is at present trading with a Forward P/E ratio of 29.5. This valuation marks a discount compared to its industry average Forward P/E of 29.83.
One should further note that AMAT currently holds a PEG ratio of 1.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.04.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 38% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.