Applied Materials (AMAT, $46.81) gets rating downgrade, price target cut from Craig-Hallum; Deutsche Bank maintains 'hold' rating
Applied Materials Inc. shares got a downgrade from Craig-Hallum analysts, while Deutsche Bank maintained a hold rating on the stock.
Shares of the supplier of equipment/software for semiconductor chips got downgraded to hold by Craig-Hallum. Applied Materials executives declined to call their fiscal third-quarter results the bottom of the current down cycle, citing the uncertainties/headwinds in global economic environment. This apparent hesitation was a factor in Craig-Hallum's downgrade of the company’s stock. Craig-Hallum analysts cut their price target on the shares to $46 from $50.
On the other hand, Deutsche Bank decided to keep its hold rating on the stock, and left the price target unchanged at $47.
Applied Materials beat the latest quarterly earnings estimates. The company reiterated its guidance for 2019, expecting a double-digit decline (mid to high teens) in wafer fabrication equipment sales and a rebound in 2020.
AMAT's RSI Indicator dives into oversold zone
The RSI Oscillator for AMAT moved into overbought territory on September 06, 2024. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
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Notable companies
The most notable companies in this group are NVIDIA Corp (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), Broadcom Inc. (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD), Texas Instruments (NASDAQ:TXN), QUALCOMM (NASDAQ:QCOM), Applied Materials (NASDAQ:AMAT), Lam Research Corp (NASDAQ:LRCX), Analog Devices (NASDAQ:ADI), KLA Corp (NASDAQ:KLAC).
Industry description
The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
Market Cap
The average market capitalization across the Semiconductors Industry is 43.08B. The market cap for tickers in the group ranges from 13.43K to 2.61T. NVDA holds the highest valuation in this group at 2.61T. The lowest valued company is CYBL at 13.43K.
High and low price notable news
The average weekly price growth across all stocks in the Semiconductors Industry was -7%. For the same Industry, the average monthly price growth was -1%, and the average quarterly price growth was -14%. PRKR experienced the highest price growth at 141%, while NNOCF experienced the biggest fall at -49%.
Volume
The average weekly volume growth across all stocks in the Semiconductors Industry was 7%. For the same stocks of the Industry, the average monthly volume growth was 5% and the average quarterly volume growth was -50%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 57
P/E Growth Rating: 55
Price Growth Rating: 63
SMR Rating: 71
Profit Risk Rating: 67
Seasonality Score: -29 (-100 ... +100)
