Why Applied Materials (AMAT) Dipped More Than Broader Market Today
The most recent trading session ended with Applied Materials (AMAT) standing at $210.25, reflecting a -0.26% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq gained 0.17%.
Coming into today, shares of the maker of chipmaking equipment had gained 5.54% in the past month. In that same time, the Computer and Technology sector gained 6.81%, while the S&P 500 gained 5.34%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. In that report, analysts expect Applied Materials to post earnings of $1.96 per share. This would mark a year-over-year decline of 2%. Our most recent consensus estimate is calling for quarterly revenue of $6.51 billion, down 1.74% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.03 per share and a revenue of $26.49 billion, signifying shifts of -0.25% and -0.1%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Applied Materials. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.56% higher. Applied Materials currently has a Zacks Rank of #2 (Buy).
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 26.24. This valuation marks a discount compared to its industry's average Forward P/E of 30.69.
One should further note that AMAT currently holds a PEG ratio of 3.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 2.98 as trading concluded yesterday.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 38% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.
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Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
