Stock Forecast Based On a Predictive Algorithm | I Know First |AMAT forecast Archives - Stock Forecast Based On a Predictive Algorithm

AMAT Stock Forecast: Navigating the Future of Semiconductor Leadership

This AMAT Stock Analysis article was written by Zheman Zhong – Financial Analyst at I Know First.

Applied Materials Inc. boasts robust profitability metrics, significantly outperforming industry medians in ROE, ROA, and ROIC
Despite a comparative lag in growth rate, AMAT maintains a solid upward revenue trend and a strong market position in semiconductor equipment manufacturing.
Financial ratios indicate AMAT's stock may be undervalued, presenting potential investment opportunities based on earnings and cash flow capabilities.
AMAT's strategic focus on innovation and customer relationships positions the company for sustained growth within the expanding semiconductor industry.

Subscribe to receive exclusive PREMIUM content here

This article was written by Vladimir Mazepa, a Financial Analyst at I Know First.

[Source: Wikimedia]

From technical perspective AMAT shows an opportunity to buy stock with a reasonable discount, where it is traded with a 38% discount from the last peak in March 2018.
Financially AMAT is undervalued among its peers and trading at 11.82 Price to Earnings ratio, compared to 17.61 in the industry. Price/Book is a bit higher than average in the industry (4.81) and Price to Sales 2.27 and are lower than the average industry 3.42.
AMAT generates stable positive Free Cash Flow
Operating Margin is quite good for semiconductor industry with almost about 30%, which helps the company manage the possible problems in the future.
Applied Materials invests in good projects by showing excellent Return on Equity – 40.93%, Assets – 17.82%, Capital – 25.26%.
AMAT boosts its dividend to $0.20 from $0.10 per share with a yield at 2.1%