Applied Materials (AMAT - Free Report) closed the most recent trading day at $43.02, moving -0.19% from the previous trading session. This change lagged the S&P 500's 0.01% gain on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.26%.
Heading into today, shares of the maker of chipmaking equipment had lost 10.33% over the past month, lagging the Computer and Technology sector's gain of 5.63% and the S&P 500's gain of 3.73% in that time.
AMAT will be looking to display strength as it nears its next earnings release, which is expected to be November 15, 2018. On that day, AMAT is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 3.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4 billion, up 0.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.45 per share and revenue of $17.24 billion. These totals would mark changes of +36.92% and +18.61%, respectively, from last year.
Any recent changes to analyst estimates for AMAT should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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, the Zacks Consensus EPS estimate has moved 2.95% lower. AMAT is currently a Zacks Rank #3 (Hold).
In terms of valuation, AMAT is currently trading at a Forward P/E ratio of 9.7. For comparison, its industry has an average Forward P/E of 12.57, which means AMAT is trading at a discount to the group.
We can also see that AMAT currently has a PEG ratio of 0.76. 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 Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.28 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.