Applied Materials (AMAT - Free Report) closed the most recent trading day at $61.93, moving -0.67% from the previous trading session. This change lagged the S&P 500's 0.19% gain on the day. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 0.08%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 2.57% over the past month. This has lagged the Computer and Technology sector's gain of 6.59% and the S&P 500's gain of 3.72% in that time.
Investors will be hoping for strength from AMAT as it approaches its next earnings release. In that report, analysts expect AMAT to post earnings of $0.92 per share. This would mark year-over-year growth of 13.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.10 billion, up 9.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.77 per share and revenue of $16.65 billion. These totals would mark changes of +24.01% and +13.98%, respectively, from last year.
Investors might also notice 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. AMAT is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that AMAT has a Forward P/E ratio of 16.52 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.92.
Investors should also note that AMAT has a PEG ratio of 2.02 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 2.02 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 6, putting it in the top 3% 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.