One Factor Driving Applied Materials (AMAT) Stock Up Today

NEW YORK (TheStreet) -- Applied Materials  (AMAT) ticked upward Friday after the manufacturer received Intel's (INTC) Preferred Quality Supplier (PQS) award for its performance in 2013.

Applied Materials was one of 18 companies to receive the honor. The company performed well in the areas Intel measures for the award: quality, cost, availability, technology, customer service, labor and ethics systems and environmental sustainability.

"It is a great honor to receive Intel's Preferred Quality Supplier award for the fourth consecutive year," said Dr. Randhir Thakur, executive vice president and general manager of the Silicon Systems Group at Applied Materials, in a statement. "Our team deeply appreciates our collaboration with Intel, a strong technology leader instrumental in driving the advancement of Moore`s Law. We are very focused on delivering quality products with speed and differentiation that meet Intel's high standards."

Applied Materials was up 1.26% to $19.33 at 11:40 a.m. on Friday.

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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 solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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

  • Powered by its strong earnings growth of 600.00% and other important driving factors, this stock has surged by 58.47% over the past year, outperforming the rise in the S&P 500 Index during the same period.
  • The revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues rose by 39.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although AMAT's debt-to-equity ratio of 0.27 is very low, it is currently higher than that of the industry average. To add to this, AMAT has a quick ratio of 1.53, which demonstrates the ability of the company to cover short-term liquidity needs.
  • APPLIED MATERIALS INC reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, APPLIED MATERIALS INC increased its bottom line by earning $0.21 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $0.21).
  • 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 644.1% when compared to the same quarter one year prior, rising from $34.00 million to $253.00 million.
  • You can view the full analysis from the report here: AMAT Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.

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