Trade-Ideas: Applied Materials (AMAT) Is Today's Post-Market Leader Stock

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 Applied Materials ( AMAT) as a post-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 $272.1 million.
  • AMAT is up 2.4% today from today'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 1.7%. AMAT has a PE ratio of 22.3. Currently there are 10 analysts that rate Applied Materials a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Applied Materials has been 13.3 million shares per day over the past 30 days. Applied has a market cap of $29.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.12 and a short float of 6% with 6.56 days to cover. Shares are up 35% year-to-date as of the close of trading on Wednesday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Applied Materials as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. 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 ratings report include:
  • Powered by its strong earnings growth of 53.33% and other important driving factors, this stock has surged by 36.24% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • 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 two years. We feel that this trend should continue. During the past fiscal year, APPLIED MATERIALS INC increased its bottom line by earning $0.89 versus $0.21 in the prior year. This year, the market expects an improvement in earnings ($1.30 versus $0.89).
  • 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 58.5% when compared to the same quarter one year prior, rising from $183.00 million to $290.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 18.6%. Since the same quarter one year prior, revenues rose by 13.9%. 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 0.25 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 1.71, which demonstrates the ability of the company to cover short-term liquidity needs.

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

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