NEW YORK (TheStreet) -- Consumers love their mobile devices and are always looking for newer models and better features. With that in mind, investors may want to consider shares of Applied Materials (AMAT) - Get Report , which makes machines that are used to manufacture chips found in mobile devices.

On Wednesday, when Applied Materials is scheduled to report its results for its fiscal first quarter that ended last month, it is expected to report an increase in earnings and revenue, in part because of the popularity of mobile devices.

Research firm IDC predicts sales of mobile devices and apps will reach $484 billion this year, accounting for 40% of growth in information-technology spending. Consumers want higher-resolution smartphones and tablets that take up less power. Applied Materials specializes in producing machines that can make chips that consume less power. The company also makes equipment used to make LCD displays and solar panels.

Analysts estimate Applied Materials will post fiscal first-quarter earnings of 27 cents per share and revenue of $2.24 billion, compared with earnings of 23 cents per share and revenue of $2.19 billion in the year-earlier quarter.

The company's profit margins have been increasing, as well. In its fiscal fourth quarter that ended in October, Applied Materials' non-GAAP gross margin rose 2.2 percentage points from a year earlier to 44.2%.

Applied Materials' stock has a consensus buy rating among analysts with an average 12-month price target of $27. On Monday, the shares closed at $23.51, down 73 cents, or 3%, as the broader market fell.

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. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

You can view the full analysis from the report here: AMAT Ratings Report

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stock mentioned.

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