Yahoo Finance Applied Materials (AMAT) Outpaces Stock Market Gains: What You Should Know
Applied Materials (AMAT) closed at $232.53 in the latest trading session, marking a +0.16% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.09% for the day. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.3%.
Shares of the maker of chipmaking equipment have appreciated by 5.99% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.18% and outperforming the S&P 500's gain of 3.38%.
Analysts and investors alike will be keeping a close eye on the performance of Applied Materials in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.01, marking a 5.79% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.67 billion, up 3.8% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $8.31 per share and revenue of $26.89 billion. These results would represent year-over-year changes of +3.23% and +1.4%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. At present, Applied Materials boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Applied Materials is holding a Forward P/E ratio of 27.94. This represents a discount compared to its industry's average Forward P/E of 34.21.
Meanwhile, AMAT's PEG ratio is currently 3.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Semiconductor Equipment - Wafer Fabrication industry stood at 3.34 at the close of the market yesterday.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 39% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
