Applied Materials AMAT shares soared 4.7% in the last trading session to close at $132.85. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.5% loss over the past four weeks.
The upswing was likely due to the perception that semiconductor companies with strong fundamentals and pricing power will perform well in the current market climate, potentially benefiting from exemptions from tariffs on semiconductors.
This maker of chipmaking equipment is expected to post quarterly earnings of $2.30 per share in its upcoming report, which represents a year-over-year change of +10.1%. Revenues are expected to be $7.11 billion, up 7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Applied Materials, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AMAT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Applied Materials is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Impinj (PIPI), finished the last trading session 4.6% lower at $69.63. PI has returned -27.3% over the past month.
For Impinj
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
