In the latest trading session, Applied Materials (AMAT) closed at $336.75, marking a +1.21% move from the previous day. This move outpaced the S&P 500's daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq increased by 0.17%.
Heading into today, shares of the maker of chipmaking equipment had gained 27.98% over the past month, outpacing the Computer and Technology sector's gain of 1.46% and the S&P 500's gain of 0.78%.
Analysts and investors alike will be keeping a close eye on the performance of Applied Materials in its upcoming earnings disclosure. The company's earnings report is set to go public on February 12, 2026. The company is forecasted to report an EPS of $2.19, showcasing a 7.98% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.86 billion, down 4.34% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.54 per share and revenue of $29.03 billion, which would represent changes of +1.27% and +2.34%, respectively, from the prior year.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. 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 business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 past month, the Zacks Consensus EPS estimate has moved 0.25% higher. Right now, Applied Materials possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Applied Materials is currently trading at a Forward P/E ratio of 34.86. This valuation marks a discount compared to its industry average Forward P/E of 37.75.
It's also important to note that AMAT currently trades at a PEG ratio of 2.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors industry had an average PEG ratio of 2.03 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 55, placing it within the top 23% 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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