U.S. markets closed
  • S&P 500

    3,666.72
    -2.29 (-0.06%)
     
  • Dow 30

    29,969.52
    +85.73 (+0.29%)
     
  • Nasdaq

    12,377.18
    +27.82 (+0.23%)
     
  • Russell 2000

    1,848.70
    +10.67 (+0.58%)
     
  • Crude Oil

    45.71
    +0.07 (+0.15%)
     
  • Gold

    1,844.30
    +3.20 (+0.17%)
     
  • Silver

    24.18
    +0.05 (+0.20%)
     
  • EUR/USD

    1.2149
    +0.0034 (+0.28%)
     
  • 10-Yr Bond

    0.9200
    -0.0280 (-2.95%)
     
  • GBP/USD

    1.3454
    +0.0078 (+0.58%)
     
  • USD/JPY

    103.8500
    -0.5740 (-0.55%)
     
  • BTC-USD

    19,452.67
    +503.77 (+2.66%)
     
  • CMC Crypto 200

    382.19
    +7.79 (+2.08%)
     
  • FTSE 100

    6,490.27
    +26.88 (+0.42%)
     
  • Nikkei 225

    26,809.37
    +8.39 (+0.03%)
     

Applied Materials (AMAT) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

In the latest trading session, Applied Materials (AMAT) closed at $58.83, marking a -1.14% move from the previous day. This change lagged the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq gained 0.64%.

Coming into today, shares of the maker of chipmaking equipment had gained 0.25% in the past month. In that same time, the Computer and Technology sector gained 4.11%, while the S&P 500 gained 3.25%.

Wall Street will be looking for positivity from AMAT as it approaches its next earnings report date. In that report, analysts expect AMAT to post earnings of $1.17 per share. This would mark year-over-year growth of 46.25%. Our most recent consensus estimate is calling for quarterly revenue of $4.60 billion, up 22.65% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.08 per share and revenue of $17.11 billion. These totals would mark changes of +34.21% and +17.15%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. AMAT is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that AMAT has a Forward P/E ratio of 14.6 right now. Its industry sports an average Forward P/E of 15.87, so we one might conclude that AMAT is trading at a discount comparatively.

It is also worth noting that AMAT currently has a PEG ratio of 1.15. 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. AMAT's industry had an average PEG ratio of 1.15 as of yesterday's close.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.