Semiconductor company Applied Materials (AMAT) is set to report its fourth-quarter earnings on November 13 after the market closes. Wall Street is predicting earnings per share of $2.11 and revenue of around $6.68 billion. These estimates represent a decrease from last year’s figures of $2.32 and $7.04 billion, respectively. However, some analysts have mixed feelings about the stock.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Indeed, five-star Barclays analyst Tom O’Malley recently raised his price target on Applied Materials from $170 to $250, but kept a Hold rating. In a Q3 preview for the semiconductor and chip equipment sector, O’Malley noted that Barclays is becoming more selective about stocks with direct exposure to artificial intelligence, especially after recent rallies. According to his research note, some AI-linked stocks have already priced in most of the potential benefits from AI adoption.
Separately, four-star Morgan Stanley analyst Shane Brett raised his price target on Applied Materials from $209 to $256 while maintaining a Buy rating. The firm believes that Applied Materials has a chance over the next six months to significantly improve investor perception, with the upcoming earnings report acting as the first key moment to begin that shift.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 6% move in either direction.
Is AMAT Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMAT stock based on 17 Buys, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMAT price target of $217.26 per share implies 5% downside risk. At the same time, TipRanks’ AI analyst has an outperform rating with a $257 price target.
