Applied Materials (AMAT) closed the most recent trading day at $158.36, moving -0.98% from the previous trading session. This change lagged the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.

Prior to today's trading, shares of the maker of chipmaking equipment had gained 8.52% over the past month. This has outpaced the Computer and Technology sector's gain of 4.06% and the S&P 500's gain of 5.76% in that time.

Applied Materials will be looking to display strength as it nears its next earnings release. On that day, Applied Materials is projected to report earnings of $1.85 per share, which would represent year-over-year growth of 33.09%. Our most recent consensus estimate is calling for quarterly revenue of $6.16 billion, up 19.43% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.13 per share and revenue of $26.55 billion, which would represent changes of +18.86% and +15.14%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Applied Materials. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% higher. Applied Materials is currently a Zacks Rank #3 (Hold).

Digging into valuation, Applied Materials currently has a Forward P/E ratio of 19.67. This valuation marks a discount compared to its industry's average Forward P/E of 20.42.

It is also worth noting that AMAT currently has a PEG ratio of 1.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.