In the latest trading session, Applied Materials (AMAT) closed at $524.09, marking a -1.05% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.19%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.05%.
The stock of maker of chipmaking equipment has fallen by 14.17% in the past month, lagging the Computer and Technology sector's loss of 4.32% and the S&P 500's gain of 0.55%.
The upcoming earnings release of Applied Materials will be of great interest to investors. The company's earnings report is expected on August 13, 2026. On that day, Applied Materials is projected to report earnings of $3.36 per share, which would represent year-over-year growth of 35.48%. Meanwhile, the latest consensus estimate predicts the revenue to be $9 billion, indicating a 23.28% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.14 per share and revenue of $33.38 billion, indicating changes of +28.87% and +17.67%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Applied Materials. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.26% increase. Applied Materials presently features a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Applied Materials is at present trading with a Forward P/E ratio of 43.65. For comparison, its industry has an average Forward P/E of 43.65, which means Applied Materials is trading at no noticeable deviation to the group.
It's also important to note that AMAT currently trades at a PEG ratio of 1.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors industry had an average PEG ratio of 1.69 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 17% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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).