Applied Materials (AMAT) ended the recent trading session at $575.39, demonstrating a -4.5% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.79%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 1.55%.
The stock of maker of chipmaking equipment has risen by 6.21% in the past month, leading the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 13, 2026. In that report, analysts expect Applied Materials to post earnings of $3.36 per share. This would mark year-over-year growth of 35.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9 billion, up 23.28% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.13 per share and revenue of $33.38 billion, indicating changes of +28.77% and +17.67%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.22% higher. Applied Materials is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 49.67 right now. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 49.67.
We can additionally observe that AMAT currently boasts a PEG ratio of 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.86.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Applied Materials, Inc. (AMAT): Free Stock Analysis Report
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