Applied Materials Inc
Applied Materials Inc
IBD Stock Analysis
- Stock has been consolidating for 24 weeks with buy point of 146.10
- Early entry for aggressive buyers available off bounce from 50-day line
- Shares have Composite Rating of 96 out of best-possible score of 99
Industry Group Ranking
* Not real-time data. All data shown was captured at
1:18PM EDT on
In afternoon trading on the stock market today, AMAT stock climbed 0.5% to 140.14.
Applied Materials stock has been consolidating for the past 24 weeks with a buy point of 146.10, according to IBD MarketSmith charts. That buy point is 10 cents above AMAT stock’s all-time high 146, reached on April 5.
Aggressive investors could have picked up AMAT stock on Friday as it bounced off its 50-day moving average line and snapped a short downtrend.
AMAT Stock Gets Post-Earnings Lift
AMAT stock has been on the rise since the company blew past Wall Street’s targets with its fiscal third-quarter results and guidance on Aug. 19.
The Santa Clara, Calif.-based company earned an adjusted $1.90 a share on sales of $6.2 billion in the quarter ended Aug. 1. Analysts expected earnings of $1.77 a share on sales of $5.94 billion, according to FactSet. On a year-over-year basis, Applied Materials earnings rose 79% while sales climbed 41%.
For the current quarter, Applied Materials forecasts adjusted earnings of $1.94 a share, up 55%, on sales of $6.33 billion, up 35%. That’s based on the midpoint of its outlook. Wall Street had predicted earnings of $1.81 a share on sales of $6.04 billion in the fiscal fourth quarter.
Semiconductor equipment vendors are benefiting as chipmakers purchase gear to add capacity during the current chip shortage. Chipmakers also are ramping up orders of advanced equipment to make next-generation chips.
Wall Street Analysts Debate Stock
On Monday, Deutsche Bank analyst Sidney Ho reiterated his buy rating on AMAT stock.
He noted that Applied Materials continues to see strength in its business in the second half of calendar 2021. The company believes its foundry/logic and DRAM chip gear sales will grow in the second half of the year vs. the first half. Meanwhile, its Nand chip gear sales will be flat to slightly down in the second half.
However, Susquehanna Financial Group analyst Mehdi Hosseini on Tuesday downgraded AMAT stock to neutral from positive on valuation.
After the company’s last beat-and-raise earnings report “all the good news (is) already dialed in,” he said in a note to clients.
Applied Materials ranks eighth out of 32 stocks in IBD’s semiconductor equipment industry group, according to IBD Stock Checkup. AMAT stock has an IBD Composite Rating of 96 out of 99. The Composite Rating scores a stock’s key growth metrics against all other stocks, regardless of industry group.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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