Applied Materials (AMAT - Free Report) closed at $54.26 in the latest trading session, marking a -1.72% move from the prior day. This move lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 11.63% over the past month. This has outpaced the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 2.46% in that time.
Wall Street will be looking for positivity from AMAT as it approaches its next earnings report date. The company is expected to report EPS of $0.69, down 28.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.69 billion, down 8.08% from the year-ago period.
It is also important to note the recent changes to analyst estimates for AMAT. These revisions help to show the ever-changing nature of near-term business trends. 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.
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 has moved 0.12% higher. AMAT is currently a Zacks Rank #4 (Sell).
Digging into valuation, AMAT currently has a Forward P/E ratio of 18.4. This represents a discount compared to its industry's average Forward P/E of 24.38.
Also, we should mention that AMAT has a PEG ratio of 3.68. 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 2.87 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% 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.