AMAT stock: buy or sell
Updated on:
Jan 25th, 2021
2
AMAT stock brief
- Applied Materials fell a -1.52% after marking new highs last Wednesday
- The stock is configuring an uptrend pattern since September 2020, when it bottomed at $53.99. Up to date, the uptrend made a 96.94% 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 doesn't match any of these trading strategies, so our recommendation is not to buy now. 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?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Much like when we have to buy shares, determining when is the best time to sell is not a haphazard decision, and we must follow our own trading style. When selling, as well as buying, our strategies are very easy to follow and are only valid for selling stocks in your porfolio, not for shorting Applied Materials stock
A guiding principle is that you should not keep an investment that yields losses greater than those expected upon purchase. When to sell shares should always be dictated 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 shares and your operation is in profit probably is not time to sell now
Applied Materials ratings
In the last month, 6 brokerage ratings were published for Applied Materials. General sentiment is bullish, with 4 out of 6 posting positive forecasts
| Brokerage firm | Rating |
|---|---|
| Dec 28th, 2020 | |
| Mizuho | |
| Dec 30th, 2020 | |
| Needham & Company LLC | |
| Jan 5th, 2021 | |
| DA Davidson | Neutral |
| Royal Bank of Canada | Neutral |
| Jan 6th, 2021 | |
| KeyCorp | Buy |
| Jan 7th, 2021 | |
| Argus | |
Applied Materials stock analysis
Applied Materials shares started an uptrend in September 2020, and grew a gorgeous 96.94%. The price action shows higher peaks and higher lows, and along the way provided some buy points for those who wanted to trade in. Latest pullback was in late December, when price bounced at $83.53. Like in all uptrends, price needs to take breath and currently price is consolidating the gains in a range between $110.88 and $83.53
$AMAT at Highs
Applied Materials did it again, and reached new all-time highs (ATH) last Wednesday at $110.88. Stock cracked new all-time highs 5 times in the last 10 sessions
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Since the price surpassed the upper band last Tuesday, the price has been corrected downwards by 2.97%
Relative strength index
Climbed over the overbought line last Friday, marking a value of 71.04. Breaking through above the overbought zone is not a bearish signal, as stock price can be above the level of 70 for many weeks and may continue to rally
Applied Materials stock price history
Applied Materials IPO was 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. An investment of thousand dollars on the IPO would worth $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 publish their analysis predicting how a particular stock will performance in the future.
Along with buy or sell recommendations, financial institutions post their price predictions based on the stock price action and the company fundamental data. Most of these predictions follow the release of new fundamental data by the company, and usually. If you are a small investor you shouldn't buy or sell based on these predictions.
There are 6 price forecasts posted for Applied Materials that average $98.67. Applied Materials closed at $106.33 last Friday, that is a 7.76% than the predicted price.
| Brokerage firm | Price target |
|---|---|
| Dec 28th, 2020 | |
| Mizuho | $82.00 → $96.00 |
| Dec 30th, 2020 | |
| Needham & Company LLC | $82.00 → $110.00 |
| Jan 5th, 2021 | |
| DA Davidson | $78.00 → $90.00 |
| Royal Bank of Canada | $95.00 → $82.00 |
| Jan 6th, 2021 | |
| KeyCorp | $89.00 → $104.00 |
| Jan 7th, 2021 | |
| Argus | $90.00 → $110.00 |
Earnings and financials
Applied Materials, Inc. ($AMAT) posted earnings of $1.25 per share last November, slightly upping the Wall St consensus estimate of $1.17 per share. This quarterly report represents an earnings surprise of 6.84%. On the contrary, reported sales were $4.7 billion, consistent with the market forecasts.
Same quarter last year, reported EPS was $0.80, so current EPS means an increase of 56.25%. Turnover skyrocketed a 24.88% on an annualized basis in the , from $37.5B to $46.9B last quarter.AMAT ($AMAT) is hosting the quarterly earnings call next Wednesday. Estimated for this quarter is $1.26, compared to $1.25 that was reported for Q4.
Applied Materials performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Applied Materials ($AMAT) | 22.90% | 72.80% | 77.20% |
Important:
The viewpoints contained in this article are personal and not recommendations for you to buy or sell stocks. The author of this text does not know the individual circumstances 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 education motives onlyAMAT summary
| Friday, January 22nd, 2021 | |
|---|---|
| Open | $108.05 |
| Close | $106.33 |
| Day range | $106.25 - $109.75 |
| Previous close | $107.97 |
| Session gain | -1.52% |
| Average true range | $5.06 |
| 50d mov avg | $87.10 |
| 100d mov avg | $73.63 |
| 200d mov avg | $65.81 |
| Earnings date | February 10th, 2021 |