The most recent trading session ended with Applied Materials (AMAT) standing at $207.32, reflecting a -0.74% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.13%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 0.1%.

Prior to today's trading, shares of the maker of chipmaking equipment had lost 0.09% over the past month. This has lagged the Computer and Technology sector's gain of 0.89% and was narrower than the S&P 500's loss of 0.35% in that time.

Market participants will be closely following the financial results of Applied Materials in its upcoming release. The company plans to announce its earnings on May 16, 2024. On that day, Applied Materials is projected to report earnings of $1.96 per share, which would represent a year-over-year decline of 2%. Alongside, our most recent consensus estimate is anticipating revenue of $6.51 billion, indicating a 1.77% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.04 per share and revenue of $26.6 billion, indicating changes of -0.12% and +0.32%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Applied Materials. These recent revisions tend to reflect the evolving nature of short-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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% increase. Applied Materials is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Applied Materials is currently trading at a Forward P/E ratio of 25.98. This valuation marks a discount compared to its industry's average Forward P/E of 29.76.

One should further note that AMAT currently holds a PEG ratio of 3.12. 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 the market closed yesterday, the Semiconductor Equipment - Wafer Fabrication industry was having an average PEG ratio of 2.87.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 38% 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.

To follow AMAT in the coming trading sessions, be sure to utilize Zacks.com.

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