Applied Materials (NASDAQ:AMAT) concluded the recent trading session with a marginal -0.15% change, landing at $131.11, trailing behind the S&P 500's 1.2% gain, Dow's 1.58% addition, and Nasdaq's 1.16% rise on Tuesday. This underperformance is not a new trend for AMAT, as the company's stock has seen a decrease of 5.16% over the past month, exceeding both the Computer and Technology sector's loss of 3.32% and the S&P 500's loss of 3.58%.
Despite this downward trend, the forthcoming earnings release for AMAT is expected to report earnings per share (EPS) of $1.98, which indicates a slight downward movement of 2.46% from the same quarter last year. The revenue forecast stands at $6.52 billion, marking a decline of 3.35%.
Looking ahead to the full-year performance, Zacks Consensus Estimates project earnings of $7.90 per share and revenue of $26.32 billion for AMAT, suggesting year-over-year changes of +2.6% and +2.06%, respectively.
The Zacks Rank system currently places AMAT at #2 (Buy), indicating potential for outperformance amidst shifting business trends. Analysts' revisions to AMAT's forecasts underscore the dynamic nature of these trends and their significant influence on stock performance.
InvestingPro Insights
In light of the real-time data from InvestingPro, Applied Materials has a market capitalization of $109.61 billion and a P/E ratio of 17.23. The revenue for the last 12 months as of Q3 2023 stands at $26.54 billion, reflecting a growth of 5.5%. Despite the recent downward trend, the company has demonstrated a strong return on assets of 22.78%.
Two InvestingPro Tips that are particularly relevant for Applied Materials are: firstly, the company yields a high return on invested capital, which is in line with its robust return on assets. Secondly, the consistently increasing earnings per share suggest a strong financial performance, reinforcing the analysts' prediction of profitability for the company this year.
InvestingPro houses countless more tips like these, aimed at aiding investors in making informed decisions. It's worth noting that Applied Materials has maintained dividend payments for 19 consecutive years, making it a potentially attractive option for income-focused investors.
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