Applied Materials (AMAT) Falls More Steeply Than Broader Market: What Investors Need to Know

Company Performance - Applied Materials (AMAT) shares decreased by 1.29% to $292.20, underperforming the S&P 500 which fell by 0.34% [1] - Over the past month, AMAT's stock has increased by 10.81%, outperforming the Computer and Technology sector's decline of 1% and the S&P 500's gain of 1.19% [1] Earnings Forecast - The upcoming earnings report for Applied Materials is projected to show earnings per share (EPS) of $2.21, a decrease of 7.14% from the same quarter last year [2] - Revenue is anticipated to be $6.86 billion, reflecting a 4.34% decline compared to the same quarter last year [2] Annual Estimates - For the entire year, Zacks Consensus Estimates forecast earnings of $9.55 per share and revenue of $28.97 billion, indicating increases of 1.38% and 2.11% respectively compared to the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Applied Materials are important as they reflect short-term business trends, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system, which incorporates these estimate changes, currently ranks Applied Materials at 3 (Hold) [6] Valuation Metrics - Applied Materials has a Forward P/E ratio of 30.98, which is lower than the industry average Forward P/E of 34.87 [7] - The company has a PEG ratio of 3.06, compared to the Electronics - Semiconductors industry's average PEG ratio of 1.98 [7] Industry Context - The Electronics - Semiconductors industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 103, placing it in the top 43% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]