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Applied Materials (AMAT) Surpasses Market Returns: Some Facts Worth Knowing
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Applied Materials (AMAT - Free Report) closed the most recent trading day at $203.92, moving +2.16% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. On the other hand, the Dow registered a gain of 0.65%, and the technology-centric Nasdaq increased by 0.44%.
The stock of maker of chipmaking equipment has risen by 20.77% in the past month, leading the Computer and Technology sector's gain of 7.68% and the S&P 500's gain of 2.72%.
The upcoming earnings release of Applied Materials will be of great interest to investors. The company is forecasted to report an EPS of $2.14, showcasing a 7.76% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.7 billion, down 4.84% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.37 per share and a revenue of $28.32 billion, representing changes of +8.32% and +4.22%, respectively, from the prior year.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Applied Materials holds a Zacks Rank of #4 (Sell).
With respect to valuation, Applied Materials is currently being traded at a Forward P/E ratio of 21.29. This represents a discount compared to its industry average Forward P/E of 35.99.
We can additionally observe that AMAT currently boasts a PEG ratio of 2.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AMAT's industry had an average PEG ratio of 2.01 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 188, finds itself in the bottom 24% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Applied Materials (AMAT) Surpasses Market Returns: Some Facts Worth Knowing
Applied Materials (AMAT - Free Report) closed the most recent trading day at $203.92, moving +2.16% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. On the other hand, the Dow registered a gain of 0.65%, and the technology-centric Nasdaq increased by 0.44%.
The stock of maker of chipmaking equipment has risen by 20.77% in the past month, leading the Computer and Technology sector's gain of 7.68% and the S&P 500's gain of 2.72%.
The upcoming earnings release of Applied Materials will be of great interest to investors. The company is forecasted to report an EPS of $2.14, showcasing a 7.76% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.7 billion, down 4.84% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.37 per share and a revenue of $28.32 billion, representing changes of +8.32% and +4.22%, respectively, from the prior year.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Applied Materials holds a Zacks Rank of #4 (Sell).
With respect to valuation, Applied Materials is currently being traded at a Forward P/E ratio of 21.29. This represents a discount compared to its industry average Forward P/E of 35.99.
We can additionally observe that AMAT currently boasts a PEG ratio of 2.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AMAT's industry had an average PEG ratio of 2.01 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 188, finds itself in the bottom 24% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.