Yahoo Finance Applied Materials (AMAT) Dips More Than Broader Markets: What You Should Know
Applied Materials (AMAT) closed at $113.84 in the latest trading session, marking a -1.65% move from the prior day. This change lagged the S&P 500's 0.46% loss on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 6.06%.
Coming into today, shares of the maker of chipmaking equipment had lost 0.64% in the past month. In that same time, the Computer and Technology sector gained 0.97%, while the S&P 500 gained 0.85%.
Wall Street will be looking for positivity from Applied Materials as it approaches its next earnings report date. This is expected to be May 18, 2023. On that day, Applied Materials is projected to report earnings of $1.84 per share, which would represent a year-over-year decline of 0.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.4 billion, up 2.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.01 per share and revenue of $24.56 billion, which would represent changes of -8.96% and -4.76%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Applied Materials is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 16.52 right now. This valuation marks a discount compared to its industry's average Forward P/E of 17.31.
Investors should also note that AMAT has a PEG ratio of 2.95 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 2.95 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
