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Here's Why Applied Materials (AMAT) Gained But Lagged the Market Today
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The latest trading session saw Applied Materials (AMAT - Free Report) ending at $192.87, denoting a +0.43% adjustment from its last day's close. This change lagged the S&P 500's 0.88% gain on the day. At the same time, the Dow added 1.24%, and the tech-heavy Nasdaq gained 0.65%.
The maker of chipmaking equipment's shares have seen an increase of 14.68% over the last month, surpassing the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company's earnings per share (EPS) are projected to be $2.28, reflecting a 7.04% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.16 billion, showing a 6.74% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.37 per share and a revenue of $29.34 billion, signifying shifts of +8.32% and +7.97%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Applied Materials. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been a 0.07% fall in the Zacks Consensus EPS estimate. Applied Materials presently features a Zacks Rank of #3 (Hold).
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 20.49. This valuation marks a discount compared to its industry's average Forward P/E of 26.04.
Also, we should mention that AMAT has a PEG ratio of 1.96. 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. The Electronics - Semiconductors was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why Applied Materials (AMAT) Gained But Lagged the Market Today
The latest trading session saw Applied Materials (AMAT - Free Report) ending at $192.87, denoting a +0.43% adjustment from its last day's close. This change lagged the S&P 500's 0.88% gain on the day. At the same time, the Dow added 1.24%, and the tech-heavy Nasdaq gained 0.65%.
The maker of chipmaking equipment's shares have seen an increase of 14.68% over the last month, surpassing the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company's earnings per share (EPS) are projected to be $2.28, reflecting a 7.04% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.16 billion, showing a 6.74% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.37 per share and a revenue of $29.34 billion, signifying shifts of +8.32% and +7.97%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Applied Materials. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been a 0.07% fall in the Zacks Consensus EPS estimate. Applied Materials presently features a Zacks Rank of #3 (Hold).
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 20.49. This valuation marks a discount compared to its industry's average Forward P/E of 26.04.
Also, we should mention that AMAT has a PEG ratio of 1.96. 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. The Electronics - Semiconductors was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.