Applied Materials, Inc. (AMAT) is set to release its earnings report for the second quarter of fiscal year 2023 on Thursday, May 19. This highly anticipated report is expected to give investors and analysts insights into the company's financial performance, market position, and future growth prospects.
Leading up to this earnings release, AMAT's Momentum Indicator moved above the 0 level on May 05, 2023. This is an important technical signal that suggests the stock could be poised for a new upward move. Traders who follow momentum indicators may want to consider buying the stock or buying call options.
To further support this bullish outlook, Tickeron's A.I.dvisor analyzed 88 similar instances where the Momentum Indicator turned positive for AMAT. In 71 of those 88 cases, the stock moved higher in the following days. This translates to a probability of 81% for a move higher after a positive momentum signal.
Investors and analysts will be closely watching AMAT's earnings report to see if the company can continue its growth trajectory. In the first quarter of fiscal year 2023, the company reported revenue of $6.7 billion, an increase of 24% year-over-year. The company's net income also increased to $1.7 billion, or $1.85 per share, up from $1.4 billion, or $1.53 per share, in the same period last year.
Analysts expect AMAT to report earnings per share of $1.97 on revenue of $7.1 billion for the second quarter of fiscal year 2023. These estimates imply year-over-year growth of 27% and 19%, respectively.
AMAT is a leading provider of equipment, services, and software to the semiconductor industry. The company's products are used in the production of a wide range of electronic devices, including smartphones, computers, and other consumer electronics.
The semiconductor industry has been experiencing strong demand and supply constraints, leading to higher prices and longer lead times for customers. This trend has been benefiting companies like AMAT, which are well-positioned to capitalize on the growing demand for semiconductors.
The technical signals and historical data suggest that AMAT could be set for a new upward move. Investors and traders will be closely watching the company's earnings report on Thursday, May 19, to see if the company can continue its growth trajectory and deliver strong financial results.
AMAT Trading results, last 6 months - Swing Trader: Medium Volatility Stocks for Active Trading (TA&FA) +12.98%
The Aroon Indicator for AMAT entered a downward trend on April 23, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 114 similar instances where the Aroon Indicator formed such a pattern. In of the 114 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on April 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on AMAT as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
AMAT moved below its 50-day moving average on April 17, 2024 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 April 23, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 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 RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where AMAT's RSI Oscillator exited the oversold zone, of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
AMAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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 63, placing this stock better than average.
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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.
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 (6.442). P/E Ratio (24.546) is within average values for comparable stocks, (112.323). Projected Growth (PEG Ratio) (2.493) is also within normal values, averaging (2.518). 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 (34.699).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of equipment and software for the semiconductor industries
Industry Semiconductors