Applied Materials (AMAT) closed the most recent trading day at $237.71, moving +1.98% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a loss of 0.48%, and the technology-centric Nasdaq increased by 0.46%.
Shares of the maker of chipmaking equipment witnessed a gain of 7.16% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.61%, and the S&P 500's gain of 2.38%.
The upcoming earnings release of Applied Materials will be of great interest to investors. The company's earnings report is expected on November 13, 2025. The company's upcoming EPS is projected at $2.11, signifying a 9.05% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.7 billion, indicating a 4.84% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.36 per share and a revenue of $28.27 billion, indicating changes of +8.21% and 0%, respectively, from the former year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% lower. Right now, Applied Materials possesses a Zacks Rank of #3 (Hold).
Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 24.9. Its industry sports an average Forward P/E of 40.6, so one might conclude that Applied Materials is trading at a discount comparatively.
Investors should also note that AMAT has a PEG ratio of 2.92 right now. 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 2.07 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 26% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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