AMAT Trading at a Discount: Time to Buy, Sell or Hold the Stock?

Zacks12-13

Applied Materials, Inc. AMAT presents an enticing valuation opportunity, trading at a forward P/E of 17.67X. This is significantly below the Zacks Electronics - Semiconductor industry average of 29.95...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2491644308?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/_e.wCX2kzGmDlUEWKL5A5g--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/bac08ef8632114fd437291c460f11cf4","is_english":true,"pubTime":"2024-12-13 21:29","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2491644308","market":"us","top_or_hot":-1,"title":"AMAT Trading at a Discount: Time to Buy, Sell or Hold the Stock?","media":"Zacks","content":"<div>\n<p>Applied Materials, Inc. AMAT presents an enticing valuation opportunity, trading at a forward P/E of 17.67X. This is significantly below the Zacks Electronics - Semiconductor industry average of 29.95...</p>\n\n<a href=\"https://finance.yahoo.com/news/amat-trading-discount-time-buy-132900185.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMAT Trading at a Discount: Time to Buy, Sell or Hold the Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMAT Trading at a Discount: Time to Buy, Sell or Hold the Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-13 21:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/amat-trading-discount-time-buy-132900185.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Applied Materials, Inc. AMAT presents an enticing valuation opportunity, trading at a forward P/E of 17.67X. This is significantly below the Zacks Electronics - Semiconductor industry average of 29.95...</p>\n\n<a href=\"https://finance.yahoo.com/news/amat-trading-discount-time-buy-132900185.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1046421795.USD","symbol_name":"富达环球科技A-ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/amat-trading-discount-time-buy-132900185.html","article_id":"2491644308","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/_e.wCX2kzGmDlUEWKL5A5g--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/bac08ef8632114fd437291c460f11cf4"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2491644308","pubTimestamp":1734096540,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Applied Materials, Inc. AMAT presents an enticing valuation opportunity, trading at a forward P/E of 17.67X. This is significantly below the Zacks Electronics - Semiconductor industry average of 29.95X and the S&P 500’s 22.85X.Several headwinds have slowed Applied Materials’ momentum. One significant factor has been the cyclical downturn in the semiconductor market, particularly in the dynamic random access memory  and NAND memory segments. AMAT’s heavy exposure to these areas, which have seen delayed capital spending and weak pricing dynamics, has dampened revenue growth prospects.Despite the aforementioned challenges, Applied Materials has reported stable financials and demonstrated resilience in adapting to a challenging environment. In the most recently reported financial results for the fourth quarter of fiscal 2024, AMAT’s revenues increased 5% year over year to $7.05 billion and surpassed the Zacks Consensus Estimate by 1.5%.Applied Materials’ gross margin of 47.5% in the fourth","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1046421795.USD":"富达环球科技A-ACC","LU1674673691.USD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AD\" (USD) INC","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","LU0444971666.USD":"天利全球科技基金","LU1951198990.SGD":"Natixis Thematics AI & Robotics Fund H-R/A SGD-H","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","LU1642822529.SGD":"THREADNEEDLE (LUX) GLOBAL TECHNOLOGY \"A\" (SGD) ACC","LU0957791311.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"ZU\" (USD) ACC","LU1815333072.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"AUP\" (USD) INC","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0476273544.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"BU\" (USD) ACC","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU0096362180.USD":"CT (LUX) I GLOBAL FOCUS \"DU\" (USD)","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU2458330169.SGD":"FRANKLIN SHARIAH TECHNOLOGY \"A\" (SGD) ACC","LU2271345857.HKD":"ALLIANZ GLOBAL SUSTAINABILITY \"AT\" (HKD) ACC","LU2458330243.SGD":"FRANKLIN SHARIAH TECHNOLOGY \"A-H1\" (SGDHDG) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","IE00BN29S564.USD":"JANUS HENDERSON BALANCED \"A3\" (USD) INC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","BK4534":"瑞士信贷持仓","BK4147":"半导体设备","LU1989773731.SGD":"CPR Invest - Education A2 Acc SGD-H","LU2360032135.SGD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (SGDHDG) INC","LU0444973449.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"DU\" (USD) ACC","ASML":"阿斯麦","AMAT":"应用材料","LU0082616367.USD":"摩根大通美国科技A（dist）","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","LU1153585028.USD":"BGF GLOBAL LONG-HORIZON EQUITY  \"A4\" (USD) INC","LRCX":"拉姆研究","ARKG":"ARK Genomic Revolution ETF","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","SG9999002232.USD":"Allianz Global High Payout USD","LU0109392836.USD":"富兰克林科技股A","IE00BQXX3C00.GBP":"GUINNESS GLOBAL INNOVATORS \"C\" (GBP) ACC","BK4588":"碎股","LU1267930813.SGD":"FRANKLIN TEMPLETON SHARIAH GLOBAL EQUITY \"AS\" (SGD) ACC","SG9999002224.SGD":"Allianz Global High Payout SGD","LU1670627923.USD":"M&G (LUX) NORTH AMERICAN DIVIDEND \"A\" (USD) ACC","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","03165":"华夏欧优股对冲","BK4551":"寇图资本持仓","KLAC":"科磊","LU0097036916.USD":"贝莱德美国增长A2 USD","DRAM":"达泰莱"},"translate_title":"AMAT折价交易：是时候买入、卖出还是持有股票了？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DRAM":1,"KLAC":1,"LRCX":1,"ASML":1,"AMAT":1,"ARKG":0.9,"03165":0.6},"content_text":"Applied Materials, Inc. AMAT presents an enticing valuation opportunity, trading at a forward P/E of 17.67X. This is significantly below the Zacks Electronics - Semiconductor industry average of 29.95X and the S&P 500’s 22.85X.\nImage Source: Zacks Investment Research\nThe stock also trades at a lower P/E multiple than its peers, including ASML Holding ASML, Lam Research LRCX and KLA Corporation KLAC. ASML Holding, Lam Research and KLA Corporation currently have a forward 12-month P/E multiple of 28.11X, 20.24X and 20.72X, respectively. For value-conscious investors, this discount is hard to ignore.\nHowever, the attractive valuation reflects a challenging year for the stock. Despite a brief rally to a 52-week high in July, AMAT has stumbled, trading 34% below that peak. Year to date, it has gained just 4.1%, a stark underperformance compared to the industry’s 38.3% rise and the S&P 500’s 28.6% gain.\nYTD Price Return Performance\nImage Source: Zacks Investment Research\nWhat’s Holding AMAT Stock Back?\nSeveral headwinds have slowed Applied Materials’ momentum. One significant factor has been the cyclical downturn in the semiconductor market, particularly in the dynamic random access memory (DRAM) and NAND memory segments. AMAT’s heavy exposure to these areas, which have seen delayed capital spending and weak pricing dynamics, has dampened revenue growth prospects.\nMoreover, geopolitical tensions, especially concerning U.S.-China trade relations, have exacerbated the uncertainty. As one of Applied Materials’ key markets, China represents a significant portion of its revenues. Ongoing restrictions on exporting advanced technology to China have raised concerns about the company’s ability to maintain growth in this region.\nThe growing proliferation of artificial intelligence (AI) has made the semiconductor equipment industry highly competitive. AMAT faces stiff competition from its peers like Lam Research, ASML Holdings and KLA Corporation, which are also making concerted efforts to capitalize on the current AI boom.\nMacroeconomic challenges, including protracted inflationary pressure and still-high interest rates, have also contributed to broader market volatility, adding pressure to AMAT's stock.\nAMAT’s Financial Resilience Amid Adversity\nDespite the aforementioned challenges, Applied Materials has reported stable financials and demonstrated resilience in adapting to a challenging environment. In the most recently reported financial results for the fourth quarter of fiscal 2024, AMAT’s revenues increased 5% year over year to $7.05 billion and surpassed the Zacks Consensus Estimate by 1.5%.\nNon-GAAP earnings per share increased by 9% to $2.32 and exceeded the consensus mark by 6.4%. This performance underscores the company’s ability to navigate industry headwinds and maintain profitability.\nApplied Materials’ gross margin of 47.5% in the fourth quarter, a 20-basis point increase from the year-ago quarter, highlights its operational efficiency despite facing margin pressures from investments in advanced technologies. The company’s management has expressed confidence in sustaining revenue growth through its robust product portfolio and strategic initiatives.\nThe Zacks Consensus Estimate for fiscal 2025 and 2026 indicates continued growth for Applied Materials.\nImage Source: Zacks Investment Research\nApplied Materials’ Technological Leadership Drives Growth\nApplied Materials’ strategic focus on advanced semiconductor nodes positions it well in a fast-evolving industry. Revenues from advanced nodes exceeded $2.5 billion in FY2024, and management projects this figure to double by FY2025, fueled by demand in AI, high-performance computing (HPC) and 5G.\nThe company’s diversification into advanced packaging technologies has also paid off, with revenues tripling over four years to $1.7 billion in FY2024. These technologies are critical for system-on-chip designs, ensuring AMAT’s relevance across industries.\nFurthermore, initiatives like the EPIC platform and the Silicon Valley EPIC Center underscore Applied Materials’ dedication to supporting customer innovation while optimizing costs. These moves strengthen its position as a leader in semiconductor manufacturing.\nWhy Holding AMAT Stock Makes Sense\nWhile near-term challenges such as geopolitical risks and market cyclicality persist, Applied Materials’ strong market position, discounted valuation and innovative capabilities make it a solid hold for long-term investors.\nThe company’s leadership in semiconductor manufacturing technology and alignment with industry megatrends like AI and 5G suggest significant growth potential. Holding AMAT stock allows investors to benefit as these long-term trends unfold. Currently, AMAT carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nKLA Corporation (KLAC) : Free Stock Analysis Report\nASML Holding N.V. (ASML) : Free Stock Analysis Report\nLam Research Corporation (LRCX) : Free Stock Analysis Report\nApplied Materials, Inc. (AMAT) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2491644308"}