Is Applied Materials Stock a Good Investment?
Applied Materials Investment Advice | AMAT |
- Examine Applied Materials' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Applied Materials' leadership team and their track record. Good management can help Applied Materials navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Applied Materials' business and its evolving consumer preferences.
- Compare Applied Materials' performance and market position to its competitors. Analyze how Applied Materials is positioned in terms of product offerings, innovation, and market share.
- Check if Applied Materials pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Applied Materials' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Applied Materials stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Applied Materials is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Applied Materials Stock
Researching Applied Materials' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 84.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.7. Applied Materials recorded earning per share (EPS) of 8.62. The entity last dividend was issued on the 21st of November 2024. The firm had 2:1 split on the 17th of April 2002.
To determine if Applied Materials is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Applied Materials' research are outlined below:
| Applied Materials generated a negative expected return over the last 90 days | |
| Over 84.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from thelincolnianonline.com: Applied Materials Shares Gap Up Whats Next |
Applied Materials Quarterly Liabilities And Stockholders Equity |
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Applied Materials uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Applied Materials. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Applied Materials' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 15th of February 2024 Upcoming Quarterly Report | View | |
| 16th of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 21st of November 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of October 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Applied Materials' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Applied Materials' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2003-11-12 | 2003-10-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2003-08-12 | 2003-07-31 | 0.04 | 0.05 | 0.01 | 25 | ||
2003-05-13 | 2003-04-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2002-11-13 | 2002-10-31 | 0.08 | 0.09 | 0.01 | 12 | ||
2002-05-14 | 2002-04-30 | 0.02 | 0.03 | 0.01 | 50 | ||
1999-02-16 | 1999-01-31 | 0.02 | 0.03 | 0.01 | 50 | ||
1998-11-17 | 1998-10-31 | 0.01 | 0.02 | 0.01 | 100 | ||
1998-08-11 | 1998-07-31 | 0.04 | 0.05 | 0.01 | 25 |
Know Applied Materials' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Applied Materials is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Applied Materials backward and forwards among themselves. Applied Materials' institutional investor refers to the entity that pools money to purchase Applied Materials' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Goldman Sachs Group Inc | 2024-06-30 | 9.3 M | Bank Of America Corp | 2024-06-30 | 8.9 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 8.9 M | Nuveen Asset Management, Llc | 2024-06-30 | 8.7 M | Northern Trust Corp | 2024-09-30 | 8.6 M | Ameriprise Financial Inc | 2024-06-30 | 8.4 M | Amvescap Plc. | 2024-06-30 | 8.2 M | Legal & General Group Plc | 2024-06-30 | 7.5 M | Deutsche Bank Ag | 2024-06-30 | 5.4 M | Blackrock Inc | 2024-06-30 | 79.1 M | Vanguard Group Inc | 2024-09-30 | 76.6 M |
Applied Materials' market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 144.03 B.Market Cap |
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Applied Materials' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.26 | 0.28 | |
| Return On Capital Employed | 0.35 | 0.37 | |
| Return On Assets | 0.23 | 0.24 | |
| Return On Equity | 0.48 | 0.50 |
Determining Applied Materials' profitability involves analyzing its financial statements and using various financial metrics to determine if Applied Materials is a good buy. For example, gross profit margin measures Applied Materials' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Applied Materials' profitability and make more informed investment decisions.
Applied Materials' Earnings Breakdown by Geography
Please note, the imprecision that can be found in Applied Materials' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Applied Materials. Check Applied Materials' Beneish M Score to see the likelihood of Applied Materials' management manipulating its earnings.
Evaluate Applied Materials' management efficiency
Applied Materials has return on total asset (ROA) of 0.1521 % which means that it generated a profit of $0.1521 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.4391 %, meaning that it created $0.4391 on every $100 dollars invested by stockholders. Applied Materials' management efficiency ratios could be used to measure how well Applied Materials manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to gain to 0.28 in 2024. Return On Capital Employed is likely to gain to 0.37 in 2024. At this time, Applied Materials' Total Current Liabilities is comparatively stable compared to the past year. Liabilities And Stockholders Equity is likely to gain to about 37.1 B in 2024, despite the fact that Change To Liabilities is likely to grow to (126.7 M).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 13.46 | 14.13 | |
| Tangible Book Value Per Share | 9.52 | 10.00 | |
| Enterprise Value Over EBITDA | 16.78 | 12.54 | |
| Price Book Value Ratio | 10.37 | 10.88 | |
| Price Fair Value | 10.37 | 10.88 | |
| Enterprise Value Multiple | 16.78 | 12.54 | |
| Enterprise Value | 114.7 B | 120.4 B |
Evaluating the management effectiveness of Applied Materials allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Applied Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Dividend Yield 0.0086 | Forward Dividend Yield 0.0086 | Forward Dividend Rate 1.6 | Beta 1.551 |
Basic technical analysis of Applied Stock
As of the 30th of November, Applied Materials shows the Mean Deviation of 1.92, standard deviation of 2.8, and Risk Adjusted Performance of (0.02). Applied Materials technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Applied Materials' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Applied Materials insiders, such as employees or executives, is commonly permitted as long as it does not rely on Applied Materials' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Applied Materials insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Adam Sanders over three months ago Disposition of tradable shares by Adam Sanders of Applied Materials at 237.41 subject to Rule 16b-3 | ||
Omkaram Nalamasu over six months ago Disposition of 22789 shares by Omkaram Nalamasu of Applied Materials at 162.33 subject to Rule 16b-3 | ||
Weatherford Yvonne over a year ago Applied Materials exotic insider transaction detected |
Applied Materials' Outstanding Corporate Bonds
Applied Materials issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Applied Materials uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Applied bonds can be classified according to their maturity, which is the date when Applied Materials has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| APPLIED MATLS INC Corp BondUS038222AG04 | View | |
| APPLIED MATERIALS INC Corp BondUS038222AN54 | View | |
| APPLIED MATERIALS INC Corp BondUS038222AP03 | View | |
| APPLIED MATLS INC Corp BondUS038222AJ43 | View | |
| APPLIED MATLS INC Corp BondUS038222AK16 | View | |
| APPLIED MATLS INC Corp BondUS038222AL98 | View | |
| APPLIED MATLS INC Corp BondUS038222AM71 | View |
Understand Applied Materials' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Applied Materials' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.06) | |||
| Mean Deviation | 1.92 | |||
| Coefficient Of Variation | (2,627) | |||
| Standard Deviation | 2.8 | |||
| Variance | 7.86 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.32) | |||
| Total Risk Alpha | (0.58) | |||
| Treynor Ratio | (0.07) | |||
| Maximum Drawdown | 16.93 | |||
| Value At Risk | (3.36) | |||
| Potential Upside | 4.31 | |||
| Skewness | (1.12) | |||
| Kurtosis | 4.02 |
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.06) | |||
| Mean Deviation | 1.92 | |||
| Coefficient Of Variation | (2,627) | |||
| Standard Deviation | 2.8 | |||
| Variance | 7.86 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.32) | |||
| Total Risk Alpha | (0.58) | |||
| Treynor Ratio | (0.07) | |||
| Maximum Drawdown | 16.93 | |||
| Value At Risk | (3.36) | |||
| Potential Upside | 4.31 | |||
| Skewness | (1.12) | |||
| Kurtosis | 4.02 |
Consider Applied Materials' intraday indicators
Applied Materials intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Applied Materials stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Applied Materials Corporate Filings
F4 | 26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 14th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 22nd of August 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
| 7th of June 2024 Prospectus used primarily for registering securities for public sale. | ViewVerify |
Applied Stock media impact
Far too much social signal, news, headlines, and media speculation about Applied Materials that are available to investors today. That information is available publicly through Applied media outlets and privately through word of mouth or via Applied internal channels. However, regardless of the origin, that massive amount of Applied data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Applied Materials news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Applied Materials relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Applied Materials' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Applied Materials alpha.
Applied Materials Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Applied Materials can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Applied Materials Historical Investor Sentiment
Investor biases related to Applied Materials' public news can be used to forecast risks associated with an investment in Applied. The trend in average sentiment can be used to explain how an investor holding Applied can time the market purely based on public headlines and social activities around Applied Materials. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Applied Materials' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Applied Materials and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Applied Materials news discussions. The higher the estimate score, the more favorable the investor's outlook on Applied Materials.
Applied Materials Corporate Management
| Ali Salehpour | Sr. VP and General Manager of New Markets and Service Group | Profile | |
| Adam Sanders | Corporate VP | Profile | |
| Teri Little | Chief VP | Profile | |
| Susan Winchester | Senior Officer | Profile | |
| Ron Naftali | Chief Group | Profile | |
| Jeff Bodner | Corp VP | Profile |
Already Invested in Applied Materials?
The danger of trading Applied Materials is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Applied Materials is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Applied Materials. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Applied Materials is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Applied Stock Analysis
When running Applied Materials' price analysis, check to measure Applied Materials' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Applied Materials is operating at the current time. Most of Applied Materials' value examination focuses on studying past and present price action to predict the probability of Applied Materials' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Applied Materials' price. Additionally, you may evaluate how the addition of Applied Materials to your portfolios can decrease your overall portfolio volatility.