Applied Materials (AMAT, $128.66) gets analysts' optimism, after Q2 earnings beat
Applied Materials got bullish views from several analysts, following its fiscal second-quarter earnings beat.
Morgan Stanley analyst Joseph Moore boosted the price target on the semiconductor equipment company’s shares to $139 from $137.Moore maintained an Equal-weight rating on the shares.
Moore noted that tight supply conditions led to better near-term spending conditions, thereby boosting Applied Materials’ performance relative to peers in the quarter. However, even as the company’s guidance implied continued wafer fab equipment, or WFE, growth through 2022, Morgan Stanley sees the growth plateauing ahead in the second half of 2021.
Needham analyst Quinn Bolton reiterated a Buy rating and $153 price target. Bolton mentioned that quarterly results were solid, and the guidance for a sequential growth in third quarter results implies about 40% year-over-year growth in Semiconductor Systems Group revenues in calendar year 2021. According to the analyst, Applied Materials will see mid- to high-single digit growth in calendar year 2022 given semiconductor industry megatrends.
"We believe that AMAT's stock will find support at its current level of 16.8x our CY22 EPS estimate, and that the risk/reward is favorable, " Bolton noted.
Credit Suisse analyst John Pitzer reiterated an Outperform rating on Applied Materials shares along with a $175 price target.
Pitzer cited second-quarter results that surpassed expectations and the strong third-quarter guidance – which, according to the analyst, reflect rising cost of capacity without 450 mm, driving structural WFE growth.
But Pitzer mentions risks from slowing EPS revisions in the second half of 2021 and WFE pauses in 2023. Nevertheless, the analyst indicated that structural foundations of over $100 billion in WFE and $11-plus EPS are becoming more certain.
AMAT's RSI Oscillator climbs out of oversold territory
The RSI Indicator for AMAT moved out of oversold territory on March 12, 2025. 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 25 similar instances when the indicator left oversold territory. In of the 25 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on March 24, 2025. You may want to consider a long position or call options on AMAT as a result. In of 90 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 March 17, 2025. Looking at past instances where AMAT's MACD turned positive, the stock continued to rise in of 48 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 314 cases, the price rose further within the following month. The odds of a continued upward trend are .
AMAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 70 cases where AMAT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
AMAT moved below its 50-day moving average on February 21, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AMAT crossed bearishly below the 50-day moving average on February 25, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 March 20, 2025. 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (10.011). P/E Ratio (24.546) is within average values for comparable stocks, (71.165). Projected Growth (PEG Ratio) (2.493) is also within normal values, averaging (2.417). Dividend Yield (0.006) settles around the average of (0.022) among similar stocks. P/S Ratio (6.631) is also within normal values, averaging (35.899).
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 74, 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 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
Industry Semiconductors