Applied Materials (AMAT) Stock Sinks As Market Gains: Here's Why

Applied Materials (AMAT) ended the recent trading session at $150.79, demonstrating a -0.5% swing from the preceding day's closing price. This change lagged the S&P 500's 0.06% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.1%.Prior to today's trading, shares of the maker of chipmaking equipment had gained 4.47% over the past month. This has outpaced the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 4.29% in that time.The investment community will be closely monitoring the performance of Applied Materials in its forthcoming earnings report. The company is scheduled to release its earnings on May 15, 2025. The company is forecasted to report an EPS of $2.31, showcasing a 10.53% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $7.12 billion, reflecting a 7.13% rise from the equivalent quarter last year.For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.36 per share and a revenue of $28.81 billion, signifying shifts of +8.21% and +6.01%, respectively, from the last year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.19% increase. Currently, Applied Materials is carrying a Zacks Rank of #3 (Hold).Looking at its valuation, Applied Materials is holding a Forward P/E ratio of 16.18. Its industry sports an average Forward P/E of 21.62, so one might conclude that Applied Materials is trading at a discount comparatively.We can also see that AMAT currently has a PEG ratio of 1.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.45.The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 21% of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them 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