Applied Materials (AMAT, $115.44) after its earning report on February 16
Applied Materials (AMAT) is a company that produces equipment, services, and software for the semiconductor industry. The company recently reported its earnings on February 16, 2023, and while the results were positive, the stock's recent movement is showing a potential sign of a reversal.
The upper Bollinger Band, a technical analysis tool used to gauge a stock's volatility and possible price moves, was broken above by AMAT on February 1st, 2023. A stock is deemed overbought and may be headed for a pullback if it breaches its upper band. AMAT's stock has since moved back below the upper band and toward the middle band, confirming that this is exactly what happened.
For traders and investors, this could be a signal to consider selling the stock or exploring put options. A.I.dvisor, an AI-powered trading platform, analyzed 44 similar instances where the stock broke above the upper band and found that in 33 of those cases, the stock fell afterwards. This puts the odds of success at 75%, suggesting that AMAT may be due for a pullback in the near future.
While the recent movement of AMAT may be cause for concern for some investors, it's important to note that the company's earnings report was positive. Applied Materials reported revenue of $6.1 billion, an increase of 12% year-over-year, and earnings per share of $1.82, an increase of 22% year-over-year.
AMAT's RSI Indicator climbs out of oversold territory
The RSI Oscillator for AMAT moved out of oversold territory on December 20, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In of the 27 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 55 cases where AMAT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on December 24, 2024. You may want to consider a long position or call options on AMAT as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAT advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for AMAT turned negative on December 10, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMAT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for AMAT entered a downward trend on December 20, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.950) is normal, around the industry mean (11.467). P/E Ratio (24.546) is within average values for comparable stocks, (57.657). Projected Growth (PEG Ratio) (2.493) is also within normal values, averaging (3.177). Dividend Yield (0.006) settles around the average of (0.021) among similar stocks. P/S Ratio (6.631) is also within normal values, averaging (54.092).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. AMAT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a manufacturer of equipment and software for the semiconductor industries
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