AMAT stock: buy or sell
Updated on:
Jun 22nd, 2021
2
AMAT stock brief
- Applied Materials stock inched 1.39% to close at $133.05 on the stock market on Monday.
- The price is currently below the lower Bollinger band, which is usually an indicator of a short-term bounce that you better not try to trade
- Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.
Should I buy Applied Materials stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $AMAT stock a buy?
In the current situation of Applied Materials there is not any eligible buy setup. This doesn't mean $AMAT will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Applied Materials stock?
How to know when is it time to sell Applied Materials?. As when we have to buy shares, determining when is appropiate to sell is not a whimsy decision, and we must follow our own trading strategy. We like very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies are not intended for shorting $AMAT stock
As a rule of thumb, you must never keep an operation that yields higher than expected losses by the time of the buy. The timing to sell your stock always has to be ruled by the stop-loss (automatic or manual)
Is it time to sell Applied Materials stock?
Currently, Applied Materials stock doesn't match any of our preferred sell setups, so if you hold Applied Materials stock and your operation is in profit probably is not time to sell now
Applied Materials ratings
In the last 30 days, 4 brokerage ratings were published for Applied Materials. General sentiment is bullish, with 3 out of 4 posting optimistic outlooks
| Brokerage firm | Rating |
|---|---|
| May 24th, 2021 | |
| Morgan Stanley | |
| May 27th, 2021 | |
| JPMorgan Chase & Co. | Buy |
| Mizuho | |
| Susquehanna | Buy |
Applied Materials stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
When the price moves out of the band (above the upper line or below the lower line) it shows that the price action is having a very strong momentum and therefore can reverse the trend to the average. At this point, the price is lower the upper band, which should mean a possible near-term rebound (at least) until it is back above the band
Relative strength index
When the fluctuates for so long below 70 and above 30, without indicating moments of overvaluation and undervaluation, the indicator gets of little use, and we find ourselves in one of these situations.
Applied Materials stock price history
Applied Materials IPO was on Mar 17th, 1980 priced at $0.00 per share1. Since then, AMAT stock surged by -, with an average of 0.00% per year. An investment of thousand dollars at that time would worth $inf nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Applied Materials stock
Nobody can predict how much a share will be priced tomorrow. However, many stock price forecasts are posted every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions publish their price forecasts based on the stock price action and the company fundamental data. Most of these forecasts follow the release of new fundamental data by the company, and usually. If you are a small trader you shouldn't trade based on these price targets.
The average price target for Applied Materials stock calculated from the table below is $156.75. That is a 17.81% than the last price ($133.05).
| Brokerage firm | Price target |
|---|---|
| May 24th, 2021 | |
| Morgan Stanley | $137.00 → $139.00 |
| May 27th, 2021 | |
| JPMorgan Chase & Co. | $146.00 → $160.00 |
| Mizuho | $155.00 → $158.00 |
| Susquehanna | $155.00 → $170.00 |
Earnings and financials
Applied Materials, Inc. ($AMAT) posted earnings of $1.63 per share in mid-May, slightly upping the Wall St consensus estimate of $1.51 per share. This Q2 report means an earnings surprise of 7.95%. On the contrary, reported sales were $5.6 billion, in line with analysts' forecasts.
Same quarter one year ago, reported EPS was $0.89, so recently reported EPS is an improvement of 83.15%. Looking at sales, figures exploded a 41.07% compared to $39.6B year over year.AMAT ($AMAT) presents Q3 earnings report next August. Market forecasts of $1.77, compared to previous quarter that was $1.63.
Applied Materials performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Applied Materials ($AMAT) | 2.60% | 11.20% | 52.30% |
Important note:
The opinions expressed in this post are personal and not recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the particular circumstances of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for education purposes onlyAMAT summary
| Monday, June 21st, 2021 | |
|---|---|
| Open | $131.19 |
| Close | $133.05 |
| Day range | $130.32 - $133.58 |
| Previous close | $131.23 |
| Session gain | 1.39% |
| Average true range | $3.86 |
| 50d mov avg | $132.71 |
| 100d mov avg | $124.77 |
| 200d mov avg | $99.72 |
| Earnings date | August 12th, 2021 |