Summary:
- Applied Materials (AMAT, Financial) exceeded earnings expectations but missed on revenue targets in Q2.
- Analysts project a potential 15.03% upside for AMAT with a "Outperform" rating.
- Current stock price may be slightly overvalued compared to the GF Value estimate.
Q2 Financial Highlights for Applied Materials
Applied Materials (AMAT) delivered a mixed bag in its second-quarter financial report. Although the company's Non-GAAP earnings per share came in at $2.39, outperforming expectations by $0.08, the revenue lagged behind, falling short by $20 million and totaling $7.1 billion. This disparity in financial metrics led to a significant reaction from investors, influencing the stock's performance.
Wall Street Analysts Forecast
When turning to analyst projections, Applied Materials Inc (AMAT, Financial) is expected to climb higher. The average one-year price target from 32 analysts stands at $201.02, with predictions ranging from a high of $245.00 to a low of $152.00. This average target price suggests a potential upside of 15.03% from the current price of $174.75. For more comprehensive details, visit the Applied Materials Inc (AMAT) Forecast page.
The consensus among 35 brokerage firms for Applied Materials Inc's (AMAT, Financial) is an average recommendation rating of 2.0, classified as "Outperform." This rating falls on a scale where 1 indicates a Strong Buy, and 5 signifies Sell.
Evaluating GF Value
According to GuruFocus estimates, the GF Value for Applied Materials Inc (AMAT, Financial) is projected to be $168.87 in the coming year. This suggests a potential downside of 3.36% from the current trading price of $174.75. The GF Value represents GuruFocus' assessment of the fair value at which the stock should trade, factoring in historical trading multiples, past business growth, and future performance estimates. For further details, explore the Applied Materials Inc (AMAT) Summary page.
