Analyst Ratings for Applied Materials Inc. (AMAT)

Updated: 2017-07-28

An average rating of Buy has been given to Applied Materials Inc. (NASDAQ:AMAT) by analysts covering the stock. AMAT had previously received a consensus rating of Buy a month ago.

24 analysts issued ratings on the stock, where 19 gave AMAT a buy rating, 0 gave an overweight rating, 4 issued a hold rating, 0 gave an underweight rating, and 1 gave a sell rating. Over the past 90 days, the number of analysts that are bullish on the stock has increased by 0. Meanwhile, the number of analysts pessimistic about the company has increased by 1.

AMAT was given price targets by several analysts. The maximum price target given was 65, which equates to a potential upside of 43.65 percent. The most pessimistic analyst gave a price target of 31, implying potential capital losses of -31.49 percent. Many analysts are not unbiased in their coverage of stocks, including price targets and stock ratings, so care must be taken in interpreting numbers released by them.

Over the past month, analysts have revised their estimates for this quarter's earnings, with a net average change of 0.6 percent. That number becomes 27.49 percent if we expand the time horizon to include the past 3 months instead of just one. Meanwhile, fiscal year estimates have been revised upwards by 0.49 percent, compared to last month. If we look at the last 90 days instead, we find a net average change of 17.39 percent in FY estimates.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. Over the past month, 1 analysts increased their quarterly estimates, while 0 analysts revised their estimates downwards. Also over the last month, 2 analysts increased their estimates for the FY earnings, compared to 0 analysts that revised their FY estimates downwards.

The growth rate of AMAT's earnings is estimated by analysts to be 25.3 percent. People on Wall Street often look at a company's PEG ratio. A lower PEG ratio is favorable, because that is often interpreted as the company being fairly priced relative to its growth rate. Wall Street investors typically prefer a PEG ratio to be smaller than 1, though it could be better to see where the ratio stands relative to peers in the industry. AMAT has a PEG ratio of 0.74.

AMAT has traded between a high of 47.86 and a low of 25.68 over the past year. Currently the stock is 76.21 percent higher than its low, and below the high by 5.45 percent. AMAT has a P/E ratio of 18.62. Investors typically compare the P/E ratio to a company's peers in the industry. The AMAT value stock report compares AMAT to some of its peers using value stock charts. The market cap of AMAT is $49.48 billion. AMAT will post this quarters earnings in days, on 0000-00-00.