Why Applied Materials (AMAT) Gained Today Despite Market Drop

The recent trading day ended with Applied Materials (AMAT) at $171.09, up 1.73%. This shift outperformed the S&P 500's 0.32% decline. However, the Dow fell 0.71% and the tech-heavy Nasdaq fell 0.2%. The shares of a chipmaking equipment company rose 12.87% in the previous month, topping the Computer and Technology sector's 9.33% increase and the S&P 500's 4.59% gain.

Applied Materials' next financial reports will be eagerly watched by market investors. The corporation will report profits on February 15, 2024. EPS is expected to drop 6.9% to $1.89 from the same period last year. Our latest average estimate is $6.47 billion in revenue, down 3.95% from the previous quarter. The Zacks Consensus Estimates predict $7.56 per share and $25.92 billion in sales for the entire year, down 6.09% and 2.26% from the previous year.

Recent revisions to Applied Materials analyst estimates may also interest investors. Recent changes reflect changing short-term business patterns. Thus, positive estimate changes indicate analyst confidence about the company's operations and profitability.

Our study reveals that estimate modifications directly affect near-term stock prices. We created the Zacks Rank, a unique algorithm that accounts for estimate fluctuations and delivers an actionable grading system.

The independently audited Zacks Rank methodology, from #1 (Strong Buy) to #5 (Strong Sell), has produced an impressive average yearly return of +25% since 1988. The Zacks Consensus EPS projection rose 0.63% in 30 days. Applied Materials is #3 (Hold) on Zacks. Applied Materials trades at 22.25 Forward P/E. Compared to its industry's 25.75 Forward P/E, this value is low.

Investors may also examine AMAT's 3.35 PEG ratio. The PEG ratio, like the P/E ratio, considers the company's predicted profits growth. The Semiconductor Equipment - Wafer Fabrication business had a 3.18 PEG ratio yesterday.

Computer and Technology includes Semiconductor Equipment-Wafer Fabrication. The Zacks Industry Rank of 59 places this industry in the top 24% of 250+ industries.

The Zacks Industry Rank calculates the average Zacks Rank of the companies in our industry categories to evaluate their strength. Our analysis reveals that the top 50% of ranked sectors outperform the bottom half 2 to 1.