The most recent trading session ended with Applied Materials (AMAT) standing at $176.99, reflecting a -0.47% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq decreased by 0.06%.
Shares of the maker of chipmaking equipment have appreciated by 5.74% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 2.8%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. In that report, analysts expect Applied Materials to post earnings of $2.28 per share. This would mark year-over-year growth of 7.04%. Meanwhile, our latest consensus estimate is calling for revenue of $7.16 billion, up 6.74% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $9.37 per share and a revenue of $29.34 billion, demonstrating changes of +8.32% and +7.97%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Materials. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.16% lower. At present, Applied Materials boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Applied Materials is currently trading at a Forward P/E ratio of 18.97. This expresses a discount compared to the average Forward P/E of 27.81 of its industry.
Meanwhile, AMAT's PEG ratio is currently 1.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 2.13 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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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