Applied Materials (AMAT) ended the recent trading session at $173.65, demonstrating a +1.63% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.12%. Elsewhere, the Dow saw an upswing of 0.52%, while the tech-heavy Nasdaq depreciated by 0.23%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 0.86% over the past month. This has outpaced the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Applied Materials in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.28, indicating a 7.04% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $7.16 billion, up 6.74% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.37 per share and a revenue of $29.34 billion, indicating changes of +8.32% and +7.97%, respectively, from the former year.
Investors should also note any recent changes 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 company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 1.16% lower within the past month. At present, Applied Materials boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Applied Materials is presently being traded at a Forward P/E ratio of 18.23. This signifies a discount in comparison to the average Forward P/E of 25.28 for its industry.
We can additionally observe that AMAT currently boasts a PEG ratio of 1.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Semiconductors industry had an average PEG ratio of 2.09 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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