Applied Materials, Inc. (AMAT) is Attracting Investor Attention: Here is What You Should Know

Core Viewpoint - Applied Materials (AMAT) has shown a positive stock performance recently, outperforming the S&P 500 and the semiconductor equipment industry, raising questions about its future direction [1] Earnings Estimate Revisions - The change in earnings estimates is crucial for determining the fair value of a stock, with upward revisions typically leading to increased investor interest and stock price [2] - For the current quarter, Applied Materials is expected to report earnings of $1.96 per share, reflecting a -2% change year-over-year [3] - The consensus earnings estimate for the current fiscal year is $8.03, indicating a -0.3% change from the previous year, while the next fiscal year is projected at $9.28, showing a +15.5% increase [3] Valuation - The Zacks Rank for Applied Materials is 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [4] - The Zacks Value Style Score grades Applied Materials as D, suggesting it is trading at a premium compared to its peers [9] Revenue Growth - The consensus sales estimate for the current quarter is $6.51 billion, indicating a -1.7% year-over-year change, while estimates for the current and next fiscal years are $26.49 billion (-0.1%) and $29.15 billion (+10%), respectively [5] Last Reported Results and Surprise History - In the last reported quarter, Applied Materials achieved revenues of $6.71 billion, a -0.5% change year-over-year, and an EPS of $2.13, compared to $2.03 a year ago [6] - The company has consistently beaten consensus EPS and revenue estimates over the past four quarters [7]