In the latest trading session, Applied Materials (AMAT - Free Report) closed at $35.19, marking a -1.62% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 6.71% over the past month. This has outpaced the Computer and Technology sector's loss of 7.28% and the S&P 500's loss of 4.37% in that time.
Wall Street will be looking for positivity from AMAT as it approaches its next earnings report date. This is expected to be February 13, 2019. In that report, analysts expect AMAT to post earnings of $0.79 per share. This would mark a year-over-year decline of 25.47%. Our most recent consensus estimate is calling for quarterly revenue of $3.72 billion, down 11.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.64 per share and revenue of $15.45 billion, which would represent changes of -18.2% and -10.47%, respectively, from the prior year.
Any recent changes to analyst estimates for AMAT should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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 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. The Zacks Consensus EPS estimate has moved 13.7% lower within the past month. AMAT is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, AMAT currently has a Forward P/E ratio of 9.84. This valuation marks a discount compared to its industry's average Forward P/E of 9.98.
Meanwhile, AMAT's PEG ratio is currently 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.15 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 233, which puts it in the bottom 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.