Applied Materials (AMAT - Free Report) closed at $50.67 in the latest trading session, marking a -0.14% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.44%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 13.54% over the past month. This has outpaced the Computer and Technology sector's gain of 6.51% and the S&P 500's gain of 4% 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 August 15, 2019. In that report, analysts expect AMAT to post earnings of $0.70 per share. This would mark a year-over-year decline of 41.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.53 billion, down 21.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.96 per share and revenue of $14.47 billion, which would represent changes of -33.48% and -16.16%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AMAT. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 0.4% lower. AMAT is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, AMAT currently has a Forward P/E ratio of 17.13. Its industry sports an average Forward P/E of 24.48, so we one might conclude that AMAT is trading at a discount comparatively.
We can also see that AMAT currently has a PEG ratio of 2.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AMAT's industry had an average PEG ratio of 2.47 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 218, which puts it in the bottom 15% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.