Applied Materials (AMAT) closed the most recent trading day at $318.67, moving -2.96% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.84% for the day. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 1.43%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 15.5% outpaced the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
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's earnings per share (EPS) are projected to be $2.19, reflecting a 7.98% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.86 billion, down 4.34% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.54 per share and a revenue of $29.03 billion, representing 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 latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.25% higher. Applied Materials is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Applied Materials is currently being traded at a Forward P/E ratio of 34.41. Its industry sports an average Forward P/E of 37.52, so one might conclude that Applied Materials is trading at a discount comparatively.
One should further note that AMAT currently holds a PEG ratio of 2.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AMAT's industry had an average PEG ratio of 2.02 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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