AMAT stock: buy or sell?
Updated on:
Nov 24th, 2020
2
AMAT stock brief
- After marking all-time highs on Tuesday, Applied Materials closed at $82.95 skyrocketing a 3.04%
- The price is currently higher than the upper Bollinger band, which is usually an indicator of a short-term correction
- On November 12, Applied Materials presented its Q4 financial report
- 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?
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?
"To sell or not to sell", if you are holding Applied Materials stock?. As when we have to buy shares, deciding when is the best time to sell is not a whimsical decision, and we must follow our own trading style. When selling, as well as buying, detailed strategies are very simple to use but are only applicable for selling shares you already own, not for selling short $AMAT stock
A golden rule is that you should never hold an operation that results in greater losses than those expected upon the buy. When to sell shares always has to 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 green can keep their positions
Applied Materials ratings
In the last month, 14 brokerage ratings were published for Applied Materials. General sentiment is bullish, with 11 out of 14 publishing optimistic forecasts
| Brokerage firm | Rating |
|---|---|
| Nov 13th, 2020 | |
| B. Riley | |
| Barclays | |
| Craig Hallum | |
| Credit Suisse Group | Buy |
| DA Davidson | Neutral |
| Deutsche Bank Aktiengesellschaft | |
| JPMorgan Chase & Co. | Buy |
| KeyCorp | Buy |
| Mizuho | |
| Morgan Stanley | |
| Needham & Company LLC | |
| Royal Bank of Canada | Buy |
| Wells Fargo & Company | Buy |
| Nov 16th, 2020 | |
| Argus | |
Applied Materials stock analysis
$AMAT at new Highs
On Tuesday, Applied Materials marked all-time highs (ATH) again at $83.14. Stock cracked new all-time highs 4 times in the last 10 sessions
SMAs overview
Supports and resistances
Price is at highs and there are not upper resistance levels.
The current supports are:
Bollinger bands
Price readings both above or below the Bollinger Bands signal that the price has followed a strong trend that has led to extreme highs or lows. At this point, the price is above the upper band, which should mean a possible near-term corrective movement (at least) until it is below the band
Relative strength index
Relative Strength Indicator (RSI) climbed above the 70 level Tuesday, marking a reading of 81.2. Climbing above the overvalued zone is not a sell signal, as shares can be above 70 for many, many weeks and continue to rally
Applied Materials stock price history
Applied Materials went public on Mar 17th, 1980 priced at $0.00 per share1. Since then, AMAT stock has risen by -, with an average of 0.00% per year. If you had invested $1,000USD in Applied Materials stock at that time, it would be valued $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. However, many stock price predictions are issued every day by banks, financial institutions and independent analysts.
The following table shows the price forecasts published by analysts in the last month. Again, these forecasts are not direct recommendations for small traders and should not be trusted blindly.
Averaging all price targets exposed below, the estimated price for Applied Materials stock is $84.21. Applied Materials closed at $82.95 on Tuesday, that is a 1.50% less than the forecasted price.
| Brokerage firm | Price target |
|---|---|
| Nov 13th, 2020 | |
| B. Riley | $82.00 → $85.00 |
| Barclays | $70.00 → $74.00 |
| Craig Hallum | $83.00 → $87.00 |
| Credit Suisse Group | $85.00 → $100.00 |
| DA Davidson | $70.00 → $78.00 |
| Deutsche Bank Aktiengesellschaft | $75.00 → $80.00 |
| JPMorgan Chase & Co. | $84.00 → $88.00 |
| KeyCorp | $81.00 → $89.00 |
| Mizuho | $77.00 → $82.00 |
| Morgan Stanley | $72.00 → $77.00 |
| Needham & Company LLC | $76.00 → $82.00 |
| Royal Bank of Canada | $75.00 → $82.00 |
| Wells Fargo & Company | $80.00 → $85.00 |
| Nov 16th, 2020 | |
| Argus | $80.00 → $90.00 |
Earnings and financials
Applied Materials ($AMAT) had the quarterly earnings call and presented the fiscal 4th-quarter report on November 12. AMAT topped analysts estimates and reported a per-share earnings of $1.25, that is a 6.84% improvement compared to the predictions of $1.17. On the other hand, reported revenues of $4.7 billion were in line with consensus predictions.
Same quarter last year, reported EPS was $0.80, so current EPS is an increase of 56.25%. Sales exploded a 24.88% on an annualized basis in the fiscal 4th-quarter, from $37.5B to $46.9B last quarter.AMAT ($AMAT) is releasing quarterly earnings report next February. Analysts expect earnings per share (EPS) of $1.26, that is a 0.80% more than previous quarter.
Applied Materials competitors
Applied Materials is part of the Semiconductor Equipment & Materials industry, where it has 21 industry peers.
Applied Materials main competitors are:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Applied Materials ($AMAT) | $66.5B | Buy | 11 |
| ASML ($ASML) | $176.8B | Buy | 1 |
| Lam Research ($LRCX) | $60.3B | Buy | 1 |
| KLA-Tencor ($KLAC) | $35.8B | Buy | 3 |
| Teradyne ($TER) | $16.6B | | 1 |
| Entegris ($ENTG) | $11.8B | Buy | 2 |
| IPG Photonics ($IPGP) | $11.3B | Buy | 2 |
1 In the last 30 days.
Applied Materials performance
To better understand Applied Materials stock performance you must compare its gains with other related stocks in same sector or industry.. For Applied Materials, the benchmark is made against ASML, Lam Research, KLA-Tencor, Teradyne, Entegris and IPG Photonics.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Applied Materials ($AMAT) | 39.20% | 29.40% | 51.80% |
| ASML ($ASML) | 15.40% | 12.80% | 33.50% |
| Lam Research ($LRCX) | 28.10% | 27.80% | 65.70% |
| KLA-Tencor ($KLAC) | 25.60% | 17.50% | 43.30% |
| Teradyne ($TER) | 19.60% | 20.20% | 60.30% |
| Entegris ($ENTG) | 16.40% | 27.90% | 51.70% |
| IPG Photonics ($IPGP) | 2.70% | 32.50% | 33.10% |
Important:
The thoughts expressed in this article are personal and not recommendations for you to buy or sell shares. The author of this report does not have an understanding of the particular conditions 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 Opinions are expressed for general educational motives onlyAMAT summary
| Tuesday, November 24th, 2020 | |
|---|---|
| Open | $81 |
| Close | $82.95 |
| Day range | $79.83 - $83.14 |
| Previous close | $80.5 |
| Session gain | 3.04% |
| Average true range | $3.66 |
| 50d mov avg | $63.65 |
| 100d mov avg | $62.99 |
| 200d mov avg | $58.30 |
| Earnings date | February 10th, 2021 |