Applied Materials (AMAT) Rises Higher Than Market: Key Facts

Company Performance - Applied Materials (AMAT) closed at $173.65, reflecting a +1.63% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.12% [1] - Over the past month, AMAT shares increased by 0.86%, contrasting with the Computer and Technology sector's decline of 3.73% and the S&P 500's decline of 3.45% [2] - The upcoming earnings disclosure is anticipated to show an EPS of$ 2.28, indicating a 7.04% growth year-over-year, with quarterly revenue expected to reach $7.16 billion, up 6.74% from the previous year [3] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at$ 9.37 per share and revenue at $29.34 billion, representing increases of +8.32% and +7.97% respectively from the prior year [4] Analyst Sentiment - Recent changes to analyst estimates for Applied Materials are crucial, as upward revisions indicate positive sentiment regarding the company's business operations and profit generation capabilities [5] - The Zacks Rank system, which reflects these estimate changes, currently assigns Applied Materials a rank of 3 (Hold), with the consensus EPS estimate having decreased by 1.16% in the past month [6][7] Valuation Metrics - Applied Materials has a Forward P/E ratio of 18.23, which is lower than the industry average of 25.28, suggesting a valuation discount [8] - The company also has a PEG ratio of 1.74, compared to the Electronics - Semiconductors industry average PEG ratio of 2.09, indicating favorable growth prospects relative to its valuation [8] Industry Context - The Electronics - Semiconductors industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 92, placing it in the top 37% of over 250 industries [9]