Applied Materials (AMAT) Outperforms Broader Market: Key Insights

The latest trading session concluded with Applied Materials (AMAT) at a closing price of $183.38, marking a gain of 0.99% compared to its previous close. This performance exceeded that of the S&P 500, which saw a modest rise of 0.41%. The Dow Jones also advanced by 0.69%, while the Nasdaq tech index increased by 0.8%.

Despite this uptick in its share price, Applied Materials has experienced a decline of 9.02% in the past month, falling short of the Computer and Technology sector's nearly flat performance of -0.01% and the S&P 500 loss of -0.97%.

Investors are keenly awaiting the upcoming earnings release from Applied Materials, scheduled for November 14, 2024. Analysts anticipate that the company will report earnings per share (EPS) of $2.18, which represents an increase of 2.83% from the same quarter last year. Additionally, the latest consensus suggests expected revenue of $6.94 billion, which reflects a growth of 3.22% compared to the previous year.

Investors should take note of any recent updates to analyst estimates for Applied Materials. Adjustments in these estimates typically signal emerging business trends, and positive revisions can indicate an improved outlook for the company's future performance.

Our analysis reveals a strong correlation between estimate changes and subsequent stock price movements. To help investors make informed decisions, we've implemented the Zacks Rank, a unique model that evaluates these estimate changes to provide a practical rating system.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell), and historically, #1 ranked stocks have generated an impressive average annual return of +25% since 1988. Currently, Applied Materials has a Zacks Rank of #3 (Hold).

When assessing valuations, Applied Materials presents a Forward Price-to-Earnings (P/E) ratio of 21.33, which is lower than the industry average Forward P/E of 26.84.

Additionally, AMAT has a PEG ratio of 2.48, which, like the P/E ratio, accounts for expected earnings growth. As of yesterday, the average PEG ratio for the Semiconductor Equipment - Wafer Fabrication industry was 2.21.

This industry falls within the broader Computer and Technology sector and currently holds a Zacks Industry Rank of 99, placing it in the top 40% among over 250 industry groups.

The Zacks Industry Rank evaluates industry groups based on the average Zacks Rank of individual stocks within those groups. Research indicates that industries in the top half tend to outperform those in the bottom half by a ratio of 2 to 1.

Investors should stay engaged with these key stock movements and metrics as well as more insights at their disposal.

AppliedMaterials, Stocks, Earnings