NEW YORK (TheStreet) -- Applied Materials (AMAT) - Get Applied Materials, Inc. Report stock closed Monday's trading session up by 0.59% to $16.08 on Monday, after analysts at Pacific Crest said that the company will outperform, Barron' reports.

Applied Materials is one of the semiconductor companies with "high dividend yields and ongoing cost-reduction initiatives," analysts noted.

The firm also cited that overall, customer and industry inventory levels for semiconductor companies were at a near-decade high.

Specifically, total supply chain grew 4% year-over-year and end-customer inventory dollars also rose 9% year-over-year, analysts added.

Other semiconductor stocks that met the firm's criteria were MaximIntegrated Products (MXIM) - Get Maxim Integrated Products, Inc. (MXIM) Report, Cypress Semiconductor (CY) - Get Cypress Semiconductor Corporation Report, and KLA-Tencor (KLAC) - Get KLA Corporation (KLAC) Report.

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Based in Santa Clara, CA, Applied Materials provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic (PV), and related industries worldwide.

Separately, TheStreet Ratings team rates APPLIED MATERIALS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate APPLIED MATERIALS INC (AMAT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 11.2%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • AMAT's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AMAT has a quick ratio of 1.57, which demonstrates the ability of the company to cover short-term liquidity needs.
  • APPLIED MATERIALS INC has improved earnings per share by 12.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, APPLIED MATERIALS INC increased its bottom line by earning $0.87 versus $0.21 in the prior year. This year, the market expects an improvement in earnings ($1.18 versus $0.87).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 9.3% when compared to the same quarter one year prior, going from $301.00 million to $329.00 million.
  • You can view the full analysis from the report here: AMAT Ratings Report