Applied Materials (AMAT - Free Report) closed the most recent trading day at $36.54, moving -1.54% from the previous trading session. This change lagged the S&P 500's 0.22% loss on the day. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.25%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 12.86% over the past month. This has outpaced the Computer and Technology sector's gain of 1.37% and the S&P 500's gain of 3.57% 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. On that day, AMAT is projected to report earnings of $0.79 per share, which would represent a year-over-year decline of 25.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.72 billion, down 11.57% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.54 per share and revenue of $15.45 billion. These totals would mark changes of -20.45% and -10.47%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 16.03% lower. AMAT currently has a Zacks Rank of #4 (Sell).
In terms of valuation, AMAT is currently trading at a Forward P/E ratio of 10.49. This valuation marks a discount compared to its industry's average Forward P/E of 10.71.
Also, we should mention that AMAT has a PEG ratio of 1.22. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.22 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.