Applied Materials (AMAT) closed the most recent trading day at $117.69, moving -1.91% from the previous trading session. This change lagged the S&P 500's daily loss of 0.61%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq lost 0.67%.
Prior to today's trading, shares of the maker of chipmaking equipment had gained 15.07% over the past month. This has lagged the Computer and Technology sector's gain of 17.44% and outpaced the S&P 500's gain of 8.32% in that time.
Investors will be hoping for strength from Applied Materials as it approaches its next earnings release, which is expected to be February 16, 2023. On that day, Applied Materials is projected to report earnings of $1.93 per share, which would represent year-over-year growth of 2.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.69 billion, up 6.62% from the year-ago period.
AMAT's full-year Zacks Consensus Estimates are calling for earnings of $6.73 per share and revenue of $24.16 billion. These results would represent year-over-year changes of -12.6% and -6.29%, respectively.
Any recent changes to analyst estimates for Applied Materials should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.6% lower. Applied Materials is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Applied Materials is holding a Forward P/E ratio of 17.84. This represents a discount compared to its industry's average Forward P/E of 18.33.
Also, we should mention that AMAT has a PEG ratio of 2.6. 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 Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 2.6 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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