Applied Materials (AMAT) Dips More Than Broader Market: What You Should Know

In the latest trading session, Applied Materials (AMAT) closed at $374.53, marking a -3.99% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.51%. On the other hand, the Dow registered a gain of 0.41%, and the technology-centric Nasdaq decreased by 1.07%.

Heading into today, shares of the maker of chipmaking equipment had lost 27.77% over the past month, lagging the Computer and Technology sector's loss of 9.88% and the S&P 500's loss of 0.87%.

Investors will be eagerly watching for the performance of Applied Materials in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 12, 2026. The company's upcoming EPS is projected at $4.06, signifying a 87.10% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.3 billion, indicating a 51.4% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.79 per share and revenue of $34.25 billion, which would represent changes of +35.77% and +20.72%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Applied Materials. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, there's been no change in the Zacks Consensus EPS estimate. As of now, Applied Materials holds a Zacks Rank of #3 (Hold).

In the context of valuation, Applied Materials is at present trading with a Forward P/E ratio of 30.5. For comparison, its industry has an average Forward P/E of 29.5, which means Applied Materials is trading at a premium to the group.

We can additionally observe that AMAT currently boasts a PEG ratio of 1.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.01.