In the latest market close, Applied Materials (AMAT) reached $147.75, with a +1.43% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.67%. Meanwhile, the Dow experienced a rise of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.87%.
The the stock of maker of chipmaking equipment has fallen by 4.72% in the past month, leading the Computer and Technology sector's loss of 7.99% and the S&P 500's loss of 5.28%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. In that report, analysts expect Applied Materials to post earnings of $2.30 per share. This would mark year-over-year growth of 10.05%. At the same time, our most recent consensus estimate is projecting a revenue of $7.11 billion, reflecting a 6.97% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.36 per share and a revenue of $28.81 billion, signifying shifts of +8.21% and +6.01%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.18% downward. Right now, Applied Materials possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Applied Materials is currently exchanging hands at a Forward P/E ratio of 15.56. Its industry sports an average Forward P/E of 22.62, so one might conclude that Applied Materials is trading at a discount comparatively.
It's also important to note that AMAT currently trades at a PEG ratio of 1.53. 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 1.41 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 23% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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