Applied Materials (AMAT) closed the latest trading day at $135.56, indicating a -1.39% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 2.36%. Meanwhile, the Dow lost 2.48%, and the Nasdaq, a tech-heavy index, lost 2.55%.

Shares of the maker of chipmaking equipment have depreciated by 9.64% over the course of the past month, underperforming the Computer and Technology sector's loss of 8.4% and the S&P 500's loss of 5.6%.

The investment community will be closely monitoring the performance of Applied Materials in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.31, reflecting a 10.53% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.11 billion, indicating a 6.97% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.35 per share and revenue of $28.81 billion. These totals would mark changes of +8.09% and +6.01%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Materials. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. Applied Materials presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Applied Materials has a Forward P/E ratio of 14.7 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.3.

Also, we should mention that AMAT has a PEG ratio of 1.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 1.31.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

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

This article originally published on Zacks Investment Research (zacks.com).

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