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Applied Materials (AMAT) Gains But Lags Market: What You Should Know
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Applied Materials (AMAT - Free Report) closed at $138.61 in the latest trading session, marking a +0.31% move from the prior day. This change lagged the S&P 500's 0.69% gain on the day. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 0.28%.
Coming into today, shares of the maker of chipmaking equipment had lost 13.6% in the past month. In that same time, the Computer and Technology sector lost 8.19%, while the S&P 500 lost 5.29%.
Wall Street will be looking for positivity from Applied Materials as it approaches its next earnings report date. The company is expected to report EPS of $1.94, up 39.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.17 billion, up 19.49% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $8.15 per share and revenue of $26.54 billion. These results would represent year-over-year changes of +19.15% and +15.08%, respectively.
Investors might also notice recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 16.96. Its industry sports an average Forward P/E of 17.49, so we one might conclude that Applied Materials is trading at a discount comparatively.
Meanwhile, AMAT's PEG ratio is currently 1.44. 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 Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.44 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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 (AMAT) Gains But Lags Market: What You Should Know
Applied Materials (AMAT - Free Report) closed at $138.61 in the latest trading session, marking a +0.31% move from the prior day. This change lagged the S&P 500's 0.69% gain on the day. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 0.28%.
Coming into today, shares of the maker of chipmaking equipment had lost 13.6% in the past month. In that same time, the Computer and Technology sector lost 8.19%, while the S&P 500 lost 5.29%.
Wall Street will be looking for positivity from Applied Materials as it approaches its next earnings report date. The company is expected to report EPS of $1.94, up 39.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.17 billion, up 19.49% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $8.15 per share and revenue of $26.54 billion. These results would represent year-over-year changes of +19.15% and +15.08%, respectively.
Investors might also notice recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 16.96. Its industry sports an average Forward P/E of 17.49, so we one might conclude that Applied Materials is trading at a discount comparatively.
Meanwhile, AMAT's PEG ratio is currently 1.44. 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 Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.44 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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.