At $59.99, Applied Materials (AMAT) a Buy based on the latest relative pricing of its shares and stock market ratings. Applied Materials Inc's (NASDAQ:AMAT) current Buy recommendation is based on reasoning that considers a ranking in the company's industry group that is in the top quarter, a ranking in its sector group that is in the top quarter, a quantitative risk/reward calculation that is attractive, and analytical scores that are near average. As a component of a sector and an industry group that are ranked well above average in attractiveness, AMAT's Buy recommendation is even more noteworthy. AMAT has maintained this ranking for 2 months.
The company is one of 39 companies within the Electronic Production Equipment GICS industry group, which is in turn part of the 373 company GICS Electronic Technology sector. The market value of AMAT is $63.4 billion which places it in the top 10% of its industry group Currently, the stock's Portfolio Grader ranking places it 9 among the 39 companies in this industry group, placing it among the leaders.
The Electronic Technology sector is ranked number 3 among the 20 sectors in the Portfolio Grader universe putting it in the top quartile of all the GICS sectors. The Electronic Production Equipment industry group is ranked 29 among the 129 industry groups within the GICS sectors, placing it above-average in terms of the Proprietary Quantitative Score scoring system.
Applied Materials has realized above-average scores in 4 of the 8 fundamental areas analyzed by Portfolio Grader and average or below-average grades in 4 of the areas used in the ranking of company stocks.
The company's operational scores provide mixed results with a ranking for sales growth that is well above the industry average but rankings for operating margin and earnings growth are below average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions and earnings surprises that are better than average, while the score for earnings momentum is much worse than average. AMAT's score for return on equity is strikingly better than its industry group average but its grade for cash flow is below-average. Based on these fundamental scores, Applied Materials places in the third quartile of the industry group.
The Proprietary Quantitative Score is used by Portfolio Grader to gauge AMAT's shares from the viewpoint of risk/reward. This unique scoring methodology considers the relative value of the company's shares based on the recent $59.99 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Considering this risk/reward calculation, AMAT currently scores well above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.
