In the latest trading session, Applied Materials (AMAT) closed at $404.98, marking a -1.97% move from the previous day. This change lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the maker of chipmaking equipment had lost 11.01% lagged the Computer and Technology sector's loss of 2.28% and the S&P 500's gain of 0.67%.
The investment community will be closely monitoring the performance of Applied Materials in its forthcoming earnings report. The company is scheduled to release its earnings on November 12, 2026. The company's upcoming EPS is projected at $4.06, signifying a 87.10% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.3 billion, indicating a 51.4% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $12.79 per share and a revenue of $34.25 billion, demonstrating changes of +35.77% and +20.72%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Applied Materials is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Applied Materials is currently being traded at a Forward P/E ratio of 32.3. This signifies no noticeable deviation in comparison to the average Forward P/E of 32.3 for its industry.
It's also important to note that AMAT currently trades at a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.11.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Applied Materials, Inc. (AMAT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).