Applied Materials (AMAT - Free Report) closed at $39.85 in the latest trading session, marking a -1.04% move from the prior day. The stock lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Prior to today's trading, shares of the maker of chipmaking equipment had lost 18.08% over the past month. This has lagged the Computer and Technology sector's gain of 0.1% and the S&P 500's gain of 1.28% 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. In that report, analysts expect AMAT to post earnings of $0.96 per share. This would mark year-over-year growth of 3.23%. Meanwhile, our latest consensus estimate is calling for revenue of $4 billion, up 0.85% from the prior-year quarter.
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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.86% lower. AMAT is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AMAT is holding a Forward P/E ratio of 9.05. This valuation marks a discount compared to its industry's average Forward P/E of 11.57.
Also, we should mention that AMAT has a PEG ratio of 0.7. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.18 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 32, which puts 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.
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