Applied Materials Inc. (AMAT:NSD) Analysts Bullish with Strong Buy, 9 Positive Signals detected

STA Research
by: STA Research
amat stock forecast

Applied Materials Inc Stock Analysis:

Based on the AMAT stock forecast from 20 analysts, the average analyst target price for Applied Materials Inc is USD 142.69 over the next 12 months. Applied Materials Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Applied Materials Inc is Slightly Bullish , which is based on 8 positive signals and 6 negative signals. At the last closing, Applied Materials Inc’s stock price was USD 106.00Applied Materials Inc’s stock price has changed by +0.90% over the past week, +12.20% over the past month and -17.70% over the last year.

 

Most Recent Analyst Ratings for AMAT Stock Forecast:

AMAT Stock Forecast News:

Applied Materials (NASDAQ:AMAT) reported their latest quarterly results in after-hours trading  on Thursday  and issued a positive guidance outlook report that relieved fears among analysts and investors of a potential slowdown in the market place.

In the  quarter ending July 31, the company earned $1.94 a share, on $6.52B in revenue. The company’s gross margins shrank in comparison to last year’s figures.

The earnings estimates for the company’s  current quarterly earnings was  $1.79 per share on $6.27B in revenue.

The company also mentioned that it anticipates  Q4 earnings to be in the range of $1.82 and $2.18 per share, in contrast to analyst’s  $1.94 estimate. The company is forecasting  the upcoming quarter quarter sales within the range between $6.25and $7 Billion.

Morgan Stanley  recently reduced the 2023 earnings estimates over immediate concerns of a reduction in  semiconductor demand.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings

AMAT stock forcast is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

AMAT stock forcast is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

AMAT stock forcast is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

AMAT stock forcast has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Disclaimer

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