AMAT stock: buy or sell
Updated on:
Apr 22nd, 2021
2
AMAT stock brief
- Applied Materials closed on Wednesday at $135.05 after skyrocketing a 5.02% breaking a streak of 3 sessions in negative.
- The stock is configuring an uptrend pattern since September 2020, when it bottomed at $53.89. Up to date, shares marked a 150.60% profit since the beginning of this rally
- Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.
Should I buy Applied Materials stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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?
Currently, Applied Materials stock matches one trading strategy:
Uptrend buy setup
Applied Materials stock continues to trend higher since in September 2020 and has marked a gorgeous 150.60% gain. Price marked a local bottom in this uptrend at $128.31 on Tuesday, and since then it bounced off a 5.25%. Breaking out above $146.00 - it's last top - will be a good entry point if Applied Materials resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $131.40
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $146.00 | $131.40 | 10.00% |
Should I sell Applied Materials stock?
When you own a stock with some profit, it's really difficult to decide the best moment to sell and get your benefits. Trading strategies let us to avoid rash decisions based on our feelings or the buzz surrounding the market. When selling, as well as buying, detailed strategies are very easy to use but are only applicable for selling shares you already own, not for shorting Applied Materials stock
A golden rule is that you should never hold an operation that leads to higher than expected losses at the time of the buy. When to sell your stock should always be ruled by the stop-loss (automatic or manual)
Is it time to sell Applied Materials stock?
In the current situation of Applied Materials there is not any eligible sell setup, so Applied Materials stock holders with operations in profit can keep their positions
Applied Materials ratings
In the last month, 24 ratings were published for Applied Materials. General sentiment is bullish, with 22 out of 24 publishing optimistic outlooks
| Brokerage firm | Rating |
|---|---|
| Mar 23rd, 2021 | |
| Bank of America | |
| Mar 29th, 2021 | |
| Bank of America | |
| Mar 30th, 2021 | |
| Sanford C. Bernstein | Buy |
| Apr 5th, 2021 | |
| B. Riley | |
| Credit Suisse Group | Buy |
| Stifel Nicolaus | Buy → |
| Apr 6th, 2021 | |
| Deutsche Bank Aktiengesellschaft | Neutral |
| Apr 7th, 2021 | |
| Barclays | Neutral |
| Cowen | Buy |
| Craig Hallum | |
| DA Davidson | |
| KeyCorp | Buy |
| Mizuho | |
| Needham & Company LLC | |
| The Goldman Sachs Group | |
| Wells Fargo & Company | Buy → Buy |
| Apr 13th, 2021 | |
| Craig Hallum | |
| DA Davidson | |
| KeyCorp | Buy |
| Mizuho | |
| Needham & Company LLC | |
| The Goldman Sachs Group | |
| Wells Fargo & Company | Buy |
| Apr 16th, 2021 | |
| Deutsche Bank Aktiengesellschaft | |
Applied Materials stock analysis
Since in September 2020, Applied Materials has been drawing an uptrend that so far marked an amazing 150.60%. During this uptrend, the price gave some entry points on the breakouts. Latest low was on Tuesday, when price bounced at $128.31. Like in all uptrends, price needs to rest and now price is moving in a range between $146.00 and $128.31
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
Relative strength index
The RSI dropped below the overbought level of 70 on April 6 after just crossing to the overbough zone for a single day (weak signal). The RSI value on Wednesday was 57.75. Applied Materials price tanked a 5.59% since that level was lost
Applied Materials stock price history
Applied Materials IPO was on Mar 17th, 1980 at $0.00 per share1. Since then, AMAT stock has risen by -, with an average of 0.00% per year. If you had invested thousand dollars in Applied Materials stock at that time, it would have a value of $inf today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Applied Materials stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations post their analysis predicting how a particular stock will performance in the future.
Along with buy or sell recommendations, financial institutions publish their price estimates based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new fundamental data by the company, and many times. If you are a small investor you must not trade based on these projections.
Averaging all price targets exposed below, the estimated price for Applied Materials stock is $159.13. Applied Materials closed at $135.05 on Wednesday, so the target price is predicting an increase by 17.83%.
| Brokerage firm | Price target |
|---|---|
| Mar 23rd, 2021 | |
| Bank of America | $140.00 → $150.00 |
| Mar 29th, 2021 | |
| Bank of America | $140.00 → $150.00 |
| Mar 30th, 2021 | |
| Sanford C. Bernstein | Not available |
| Apr 5th, 2021 | |
| B. Riley | $150.00 → $195.00 |
| Credit Suisse Group | $145.00 → $175.00 |
| Stifel Nicolaus | $140.00 → $160.00 |
| Apr 6th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $140.00 → $150.00 |
| Apr 7th, 2021 | |
| Barclays | $125.00 → $150.00 |
| Cowen | $140.00 → $160.00 |
| Craig Hallum | $142.00 → $170.00 |
| DA Davidson | $145.00 → $165.00 |
| KeyCorp | $144.00 → $151.00 |
| Mizuho | $130.00 → $155.00 |
| Needham & Company LLC | $130.00 → $153.00 |
| The Goldman Sachs Group | $133.00 → $151.00 |
| Wells Fargo & Company | $145.00 → $160.00 |
| Apr 13th, 2021 | |
| Craig Hallum | $142.00 → $170.00 |
| DA Davidson | $145.00 → $165.00 |
| KeyCorp | $144.00 → $151.00 |
| Mizuho | $130.00 → $155.00 |
| Needham & Company LLC | $130.00 → $153.00 |
| The Goldman Sachs Group | $133.00 → $151.00 |
| Wells Fargo & Company | $145.00 → $160.00 |
| Apr 16th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $150.00 → $160.00 |
Earnings and financials
Last February, Applied Materials, Inc. ($AMAT) posted adjusted EPS for that slightly surpassed analysts' expectations. Quarterly EPS was $1.39 per share instead of $1.28. This Q1 report represents an earnings surprise of 8.59%. Company's revenue was $5.2 billion in contrast to $5.0 billion estimated by analysts.
In comparing, the EPS for the same quarter last year was $0.98, so current EPS means a gain of 41.84%. Turnover exploded a 24.03% on an annualized basis in the , from $41.6B to $51.6B last quarter.AMAT ($AMAT) will host the quarterly earnings call mid next May. Forecasted for this quarter is $1.51, compared to $1.39 that was reported for Q1.
Applied Materials performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Applied Materials ($AMAT) | 12.60% | 24.00% | 116.50% |
Please read:
The viewpoints given in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this text does not have any knowledge of the particular positions of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for general educational motives onlyAMAT summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $130.14 |
| Close | $135.05 |
| Day range | $129 - $135.16 |
| Previous close | $128.59 |
| Session gain | 5.02% |
| Average true range | $6.17 |
| 50d mov avg | $122.04 |
| 100d mov avg | $107.54 |
| 200d mov avg | $85.19 |
| Earnings date | May 13th, 2021 |