Applied Materials (AMAT) Advances While Market Declines: Some Information for Investors

In the latest trading session, Applied Materials (AMAT) closed at $326.95, marking a +2.47% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.06%. Elsewhere, the Dow saw a downswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.06%. Shares of the maker of chipmaking equipment have appreciated by 25.87% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.88%, and the S&P 500's gain of 1.99%.The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is expected to report EPS of $2.21, down 7.14% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.86 billion, reflecting a 4.34% fall from the equivalent quarter last year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.57 per share and revenue of $29.01 billion, indicating changes of +1.59% and +2.26%, respectively, compared to the previous year. It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. Applied Materials is currently a Zacks Rank #3 (Hold). In the context of valuation, Applied Materials is at present trading with a Forward P/E ratio of 33.35. This signifies a discount in comparison to the average Forward P/E of 36.82 for its industry. Meanwhile, AMAT's PEG ratio is currently 3.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.98 at the close of the market yesterday. The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons 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. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Materials, Inc. (AMAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks