Yahoo Finance Applied Materials (AMAT) Outperforms Broader Market: What You Need to Know
In the latest trading session, Applied Materials (AMAT) closed at $196.06, marking a +1.46% move from the previous day. This change outpaced the S&P 500's 0.02% gain on the day. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.1%.
The maker of chipmaking equipment's stock has dropped by 6.5% in the past month, falling short of the Computer and Technology sector's loss of 5.13% and the S&P 500's loss of 3.01%.
Market participants will be closely following the financial results of Applied Materials in its upcoming release. The company is predicted to post an EPS of $1.96, indicating a 2% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.51 billion, indicating a 1.77% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.04 per share and revenue of $26.49 billion, which would represent changes of -0.12% and -0.09%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Applied Materials. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Applied Materials is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 24.04. This valuation marks a discount compared to its industry's average Forward P/E of 28.33.
Investors should also note that AMAT has a PEG ratio of 2.89 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 2.76.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 49, placing it within the top 20% of over 250 industries.
The Zacks Industry Rank is ordered 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
