In the latest trading session, Applied Materials (AMAT - Free Report) closed at $43.11, marking a -1.93% move from the previous day. This move lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.5%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 3.14% over the past month. This has outpaced the Computer and Technology sector's gain of 2.84% and the S&P 500's gain of 2.62% in that time.
AMAT will be looking to display strength as it nears its next earnings release, which is expected to be May 16, 2019. The company is expected to report EPS of $0.66, down 45.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.48 billion, down 23.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.94 per share and revenue of $14.50 billion, which would represent changes of -33.93% and -15.97%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AMAT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AMAT is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note AMAT's current valuation metrics, including its Forward P/E ratio of 14.96. For comparison, its industry has an average Forward P/E of 15.23, which means AMAT is trading at a discount to the group.
Investors should also note that AMAT has a PEG ratio of 1.84 right now. 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 was holding an average PEG ratio of 1.5 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 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.