Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Applied Materials as such a stock due to the following factors:
- AMAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $173.4 million.
- AMAT traded 1.3 million shares today in the pre-market hours as of 8:12 AM.
- AMAT is up 9.1% today from Friday's close.
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More details on AMAT:
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic (PV), and related industries worldwide. The stock currently has a dividend yield of 2.5%. Currently there are 7 analysts that rate Applied Materials a buy, 1 analyst rates it a sell, and 6 rate it a hold.
The average volume for Applied Materials has been 11.3 million shares per day over the past 30 days. Applied has a market cap of $19.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.81 and a short float of 1.3% with 1.62 days to cover. Shares are up 40.6% year to date as of the close of trading on Friday.
rates Applied Materials as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, AMAT's share price has jumped by 39.86%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AMAT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- AMAT's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
- 45.62% is the gross profit margin for APPLIED MATERIALS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.50% trails the industry average.
- AMAT, with its decline in revenue, slightly underperformed the industry average of 13.9%. Since the same quarter one year prior, revenues fell by 15.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- APPLIED MATERIALS INC's earnings per share declined by 17.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, APPLIED MATERIALS INC reported lower earnings of $0.06 versus $1.45 in the prior year. This year, the market expects an improvement in earnings ($0.59 versus $0.06).
- You can view the full Applied Materials Ratings Report.