Today’s Featured Stock
Valued at $357 billion, Applied Materials (AMAT) provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. With its diverse technology capabilities, Applied Materials delivers products and services that improve device performance, yield, and cost.
Its customers include manufacturers of semiconductor chips, liquid crystal and organic light-emitting diode (OLED) displays, and other electronic devices.
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What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. AMAT checks those boxes. The Trend Seeker issued a new “Buy” signal on April 8. Since then, the stock has gained 16.72%.
www.barchart.comBarchart Technical Indicators for Applied Materials
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Applied Materials scored an all-time high of $462.40 on May 27.
Applied Materials has a Weighted Alpha of +192.17. AMAT has a 100% “Buy” opinion from Barchart. The stock has gained 179.09% over the past 52 weeks. Applied Materials has its Trend Seeker “Buy” signal intact. The stock recently traded at $449.81 with a 50-day moving average of $397.24. AMAT has made 10 new highs and gained 17.87% over the past month. Relative Strength Index (RSI) is at 61.39. 60-month beta is at 1.66x. There’s a technical support level around $439.39.Don’t Forget the Fundamentals
$357 billion market capitalization. 45.32x trailing price-earnings ratio. 0.47% dividend yield Analysts project revenue to grow 17.35% this year and another 23.45% next year. Earnings are estimated to increase 31.14% this year and an additional 31.90% next year.Analyst and Investor Sentiment on Applied Materials
The Wall Street analysts followed by Barchart give the stock 26 “Strong Buy,” 3 “Moderate Buy,” and 9 “Hold” opinions with price targets between $340 and $575. Value Line ranks the stock “Highest” with price targets between $171 and $535. CFRA’s MarketScope rates the stock a “Strong Buy” with a price target of $533. Morningstar thinks the stock is fairly valued with a price target of $470. 132,450 investors are following the stock on Seeking Alpha, which rates it a “Hold.” Short interest is 2% of the float with 2.75 days to cover the float.The Bottom Line on Applied Materials
Applied Materials is firing on all cylinders. Some analysts are voicing caution with the valuation, but Morningstar is usually the most critical about valuation and it thinks the stock is fairly valued. Usually when a stock gets above its value, the short money comes in, but they are only at 2%. Looks like a safe bet to me.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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