NEW YORK (TheStreet) -- Shares of Applied Materials (AMAT) - Get Report plunged, closing down 8.39% to $19.97 in Monday's regular trading session on very heavy trading volume, after the Department of Justice opposed its merger deal with Tokyo Electron (TOELY) .

The semiconductor equipment maker scrapped its $9.39 billion bid to acquire Tokyo Electron.

The Department of Justice said that the remedy proposal to replace competition lost from the merger of the two companies is not sufficient.

Applied Materials and Tokyo Electron first announced their all-stock deal in September of 2013, according to Bloomberg.

About 217.65 million shares of Applied Materials have exchanged hands as of 4:31 p.m. ET, compared to its average trading volume of about 17.57 million shares a day.

The stock was the worst performing S&P 500 component on the day.

Applied Materials provides manufacturing equipment, services and software to the global semiconductor, flat panel display, solar photovoltaic and related industries. The company is based in Santa Clara, Calif.

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

"We rate APPLIED MATERIALS INC (AMAT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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

  • AMAT's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 7.7%. 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 1.85, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • APPLIED MATERIALS INC has improved earnings per share by 33.3% 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 ($1.24 versus $0.87).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 37.5% when compared to the same quarter one year prior, rising from $253.00 million to $348.00 million.
  • You can view the full analysis from the report here: AMAT Ratings Report

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