This tech company beating analysts’ earnings estimates by a penny last quarter. 20 analysts have increased their forecasts for the company for this year and 10 for next year.
Applied Materials (AMAT)
From Ford Equity Research Report
We project that Applied Materials Inc. (AMAT) will strongly outperform the market over the next 6 to 12 months.
Applied Materials is engaged in providing manufacturing equipment, services and software to the semiconductor, display, solar photovoltaic (PV) and related industries. The company’s customers include manufacturers of semiconductor wafers and chips, liquid crystal and other displays, solar PV cells and modules, and other electronic devices.
The company operates in four reportable segments: Silicon Systems, Applied Global Services, Display, and Energy and Environmental Solutions. Earnings Strength is POSITIVE. While Applied Materials Inc.'s earnings have risen from $1.17 to an estimated $2.16 over the past 5 quarters, they have shown acceleration in quarterly growth rates when adjusted for the volatility of earnings. This indicates an improvement in future earnings growth may occur.
Earnings forecasts for Applied Materials Inc. have been increasing recently, which indicates an improvement in future earnings growth. The company has also reported higher earnings than those predicted in earlier estimates. This indicates an ability to exceed analysts’ expectations and the potential for improving earnings growth in the future.
Relative Valuation is VERY POSITIVE. Applied Materials Inc.'s operating earnings yield of 6.9% ranks above 82% of the other companies in the Ford universe of stocks, indicating that it is undervalued.
Price Movement is VERY POSITIVE. Applied Materials Inc.'s stock price is up 64.3% in the last 12 months, up 4.7% in the past quarter, and up 10% in the past month. This historical performance should lead to above average price performance in the next one to three months.
Richard Segarra, CFA, Ford Equity Research Report, www.fordequity.com, 800-842-0207, December 2, 2016