Applied Materials (AMAT) Outshines the Market: Key Insights

The recent trading day concluded with Applied Materials (AMAT) reaching a price of $183.38, marking a 0.99% increase from its previous close. This performance stands out, especially as it surpassed the S&P 500's gain of 0.41%. The Dow Jones Industrial Average also saw a rise of 0.69%, and the tech-heavy Nasdaq experienced a boost of 0.8%.

However, it's essential to note that over the past month, shares of Applied Materials have seen a decline of 9.02%. This decrease is in contrast to a minor loss of 0.01% in the broader Computer and Technology sector and a 0.97% drop in the S&P 500.

Investors are keenly awaiting Applied Materials' upcoming earnings report, scheduled for November 14, 2024. Analysts expect the company to report earnings per share (EPS) of $2.18, which represents a growth of 2.83% compared to the same quarter last year. Furthermore, revenue projections stand at $6.94 billion, indicating a 3.22% increase from the prior year's quarter.

Changes in analyst estimates can signal important trends for investors. Recent updates to these estimates reflect current business conditions. Positive revisions are generally seen as a favorable indicator for future performance.

Our analysis indicates that shifts in estimates correlate strongly with future stock performance. To highlight this, we employ the Zacks Rank system, a unique ranking model that evaluates these estimate changes and assigns a rating. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell), and has a proven track record, with #1 stocks achieving an average annual return of +25% since 1988. As of now, Applied Materials holds a Zacks Rank of #3 (Hold), showing stability in its EPS estimates over the last month.

From a valuation perspective, Applied Materials trades at a Forward P/E ratio of 21.33, which is below the industry average Forward P/E of 26.84. Additionally, the company has a PEG ratio of 2.48. The PEG ratio factors in projected earnings growth, similar to the P/E ratio. The Semiconductor Equipment - Wafer Fabrication industry currently shows an average PEG ratio of 2.21.

This industry falls within the Computer and Technology sector and has a favorable Zacks Industry Rank of 99, placing it in the top 40% of over 250 different industry groups. The Zacks Industry Rank evaluates the strength of various industries by calculating the average Zacks Rank of stocks within those groups. Notably, the top half of these ranked industries generally outperform the bottom half by a ratio of 2 to 1.

For investors, it is crucial to monitor these key stock indicators and trends closely.

AppliedMaterials, Earnings, StockPerformance