In the latest trading session, Applied Materials (AMAT) closed at $63.81, marking a +0.13% move from the previous day. This change lagged the S&P 500's 0.17% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq lost 0.81%.
Heading into today, shares of the maker of chipmaking equipment had gained 4.01% over the past month, lagging the Computer and Technology sector's gain of 7.91% and the S&P 500's gain of 5.15% in that time.
AMAT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.95, up 28.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.20 billion, up 17.81% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.81 per share and revenue of $16.67 billion, which would represent changes of +25.33% and +14.1%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AMAT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 remained stagnant within the past month. AMAT is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that AMAT has a Forward P/E ratio of 16.71 right now. This represents a discount compared to its industry's average Forward P/E of 21.89.
Investors should also note that AMAT has a PEG ratio of 1.23 right now. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.61 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 54, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
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