Home  »  Companies   »  Can Applied Materials Inc. (NASDAQ:AMAT) Stock Be ...

Can Applied Materials Inc. (NASDAQ:AMAT) Stock Be A Good Mid-Term Investment?

Applied Materials Inc. (NASDAQ:AMAT) price is hovering higher on Monday, February 12, jumping 0.33% above its previous close.

A look at today’s price movement shows that the recent level at last check reads $185.84. The company’s 5Y monthly beta was ticking 1.55 while its P/E ratio in the trailing 12-month period read 22.98. Taking into account the 52-week price action we note that the stock hit a 52-week high of $186.15 and 52-week low of $109.00. The stock added 22.70% on its value in the past month.

#1 Small-Cap Uranium Stock for Ultra-Fast Gains in 2024

We've uncovered THE ONE small-cap uranium stock that has unearthed a near-surface, high-grade uranium discovery in the Saudi Arabia of Uranium — Canada's prolific Athabasca Basin. Best of all, this small-cap uranium stock is currently flying just below Wall Street's radar… giving you the early-entry opportunity around US$0.30 per share. But that won't last long. Drills are turning right now with results set to be released to the market very, very soon.

Learn all about it in this brand new FREE online report.
Sponsored

Applied Materials Inc., which has a market valuation of $155.14 billion, is expected to release its quarterly earnings report Feb 15, 2024. The company stock has a Forward Dividend ratio of 1.23 (0.66%), while the dividend yield is 1.22 (0.65%). It is understandable that investor optimism is growing ahead of the company’s current quarter results. Analysts tracking AMAT have forecast the quarterly EPS to grow by 1.91 per share this quarter, while the same analysts predict the annual EPS to hit $7.73 for the year 2024 and up to $9.03 for 2025. In this case, analysts estimate an annual EPS growth of -4.00% for the year and 16.80% for the next year.

On average, analysts have forecast the company’s revenue for the quarter will hit $6.48 billion, with the likely lows of $6.34 billion and highs of $6.59 billion. Staying with the analyst view, there is a consensus estimate of $26.15 billion for the company’s annual revenue in 2024. Per this projection, the revenue is forecast to grow -1.40% below that which the company brought in 2024.

Revisions to the company’s EPS highlights a short term direction of a stock’s price movement, which in the last 7 days came up with no upward and no downward reviews. On the technical perspective front, indicators give AMAT a short term outlook of 100% Buy on average. Looking at the stock’s medium term indicators we note that it is averaging as a 100% Buy, while an average of long term indicators are currently assigning the stock as 100% Buy.

If we dive deeper into the stock’s performance we see the positive picture represented by the PEG ratio, currently standing at 1.54. The overview shows that AMAT’s price is at present 11.64% off the SMA20 and 16.76% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 73.91, with weekly volatility standing at 3.09%. The indicator jumps to 2.61% when calculated based on the past 30 days. Applied Materials Inc. (NASDAQ:AMAT)’s beta value is holding at 1.57, while the average true range (ATR) indicator is currently reading 4.94.

Turning out attention to how the Applied Materials Inc. stock has performed in comparison to its peers in the industry, here’s what we find: AMAT’s stock is 0.33% on the day and 60.62% in the past 12 months. Turning out attention to how the Applied Materials Inc. stock has performed in comparison to its peers in the industry, here’s what we find: AMAT’s stock is 0.33% on the day and 60.62% in the past 12 months. As for Applied Materials Inc., the P/E ratio stands at 22.98 lower than that of Broadcom Inc.’s at 38.80 and Qualcomm Inc.’s 22.18.

An analysis of the Applied Materials Inc. (NASDAQ:AMAT) stock in terms of its daily trading volume indicates that the 3-month average is 1.46. However, this figure increases on the past 10-day timeline to an average of 5.78 million.

Current records show that the company has 833.00M in outstanding shares. The insiders’ percentage holdings are 0.39% of outstanding shares while the percentage share held by institutions stands at 83.05%. The stats also highlight that short interest as of Jan 31, 2024, stood at 16.78 million shares, which puts the short ratio at the time at 2.58. From this we can glean that short interest is 2.02% of company’s current outstanding shares. Notably, we see that shares short in January fall slightly given the previous month’s figure stood at 22.55 million. But the 15.04% upside, the stock’s price has registered year-to-date as of today’s value, will likely reignite investor interest given the prospect of it rallying even higher.