Applied Materials (AMAT) closed at $152.12 in the latest trading session, marking a -1.46% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq appreciated by 0.52%.

The the stock of maker of chipmaking equipment has fallen by 12.29% in the past month, lagging the Computer and Technology sector's loss of 12.04% and the S&P 500's loss of 7.33%.

Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.30, showcasing a 10.05% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $7.11 billion, showing a 6.97% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $9.35 per share and a revenue of $28.77 billion, demonstrating changes of +8.09% and +5.86%, respectively, from the preceding 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.34% downward. As of now, Applied Materials holds a Zacks Rank of #3 (Hold).

Investors should also note Applied Materials's current valuation metrics, including its Forward P/E ratio of 16.52. This indicates a discount in contrast to its industry's Forward P/E of 25.64.

Investors should also note that AMAT has a PEG ratio of 1.63 right now. 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 1.6.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 32% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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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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