In the latest close session, Applied Materials (AMAT) was down 1.17% at $259.97. This move lagged the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.24%.
Shares of the maker of chipmaking equipment have appreciated by 3.26% over the course of the past month, outperforming the Computer and Technology sector's gain of 0.2%, and the S&P 500's gain of 0.94%.
The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. It is anticipated that the company will report an EPS of $2.21, marking a 7.14% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.86 billion, down 4.34% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.55 per share and revenue of $28.97 billion. These totals would mark changes of +1.38% and +2.11%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Materials. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.52% higher. As of now, Applied Materials holds a Zacks Rank of #3 (Hold).
In the context of valuation, Applied Materials is at present trading with a Forward P/E ratio of 27.53. Its industry sports an average Forward P/E of 36.1, so one might conclude that Applied Materials is trading at a discount comparatively.
Meanwhile, AMAT's PEG ratio is currently 2.72. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.04.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 106, placing it within the top 43% of over 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, Inc. (AMAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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