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 sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for AMAT moved above the 200-day moving average on July 14, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 05, 2025. You may want to consider a long position or call options on AMAT as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AMAT just turned positive on June 09, 2025. Looking at past instances where AMAT's MACD turned positive, the stock continued to rise in of 43 cases over the following month. 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 306 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 233 cases where AMAT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
AMAT broke above its upper Bollinger Band on June 25, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring 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 well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMAT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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 (9.503). P/E Ratio (24.546) is within average values for comparable stocks, (63.755). Projected Growth (PEG Ratio) (2.493) is also within normal values, averaging (2.346). Dividend Yield (0.006) settles around the average of (0.020) among similar stocks. P/S Ratio (6.631) is also within normal values, averaging (39.432).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than 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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