Applied Materials (AMAT) closed at $182.82 in the latest trading session, marking a +1.57% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.47%. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 1.95%.
The stock of maker of chipmaking equipment has fallen by 5.79% in the past month, lagging the Computer and Technology sector's gain of 3.41% and the S&P 500's gain of 0.64%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 14, 2025. The company's earnings per share (EPS) are projected to be $2.34, reflecting a 10.38% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.2 billion, reflecting a 6.23% rise from the equivalent quarter last year.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $9.47 per share and revenue of $28.81 billion. These results would represent year-over-year changes of +9.48% and +6.02%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 #2 (Buy).
In terms of valuation, Applied Materials is presently being traded at a Forward P/E ratio of 19. This valuation marks a discount compared to its industry average Forward P/E of 26.65.
Also, we should mention that AMAT has a PEG ratio of 2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.58 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Applied Materials, Inc. (AMAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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