Applied Materials (AMAT) closed at $63.89 in the latest trading session, marking a +1.09% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 2.76% over the past month. This has lagged the Computer and Technology sector's gain of 6.3% and the S&P 500's gain of 3.23% in that time.
Wall Street will be looking for positivity from AMAT as it approaches its next earnings report date. On that day, AMAT is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 13.58%. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for AMAT should also be noted by investors. Recent revisions tend to reflect the latest 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. 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 #3 (Hold) right now.
Valuation is also important, so investors should note that AMAT has a Forward P/E ratio of 16.75 right now. Its industry sports an average Forward P/E of 21.62, so we one might conclude that AMAT is trading at a discount comparatively.
We can also see that AMAT currently has a PEG ratio of 2.05. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 2.05 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 23, putting it in the top 10% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
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