Applied Materials (AMAT) closed at $183.24 in the latest trading session, marking a -0.73% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.02%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.04%.
Coming into today, shares of the maker of chipmaking equipment had lost 0.83% in the past month. In that same time, the Computer and Technology sector gained 4.44%, while the S&P 500 gained 3.77%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.18, signifying a 2.83% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.94 billion, up 3.23% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.51 per share and a revenue of $27.07 billion, signifying shifts of +5.71% and +2.09%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Materials. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Applied Materials is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 21.68 right now. This denotes a discount relative to the industry's average Forward P/E of 27.9.
Meanwhile, AMAT's PEG ratio is currently 2.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 2.04 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
