Applied Materials, Inc. manufactures computer chips, and the stock was in an “inflating parabolic bubble” formation on its weekly chart when it traded to its all-time intraday high of $58.73 on Jan. 25. The stock closed Monday at $49.50, down 3.2% year to date and in correction territory at 15.7% below its all-time high. The stock set its 2018 low of $45.13 on Feb. 9 and has rebounded by 9.7% since then.
Analysts expect Applied Materials to deliver earnings per share between 97 cents and $1.00 when it reports results after the closing bell on Wednesday, Feb. 14. Some analysts expect strong growth in the semiconductor and display segments. The stock had been outperforming the industry until reaching its high on Jan. 25. Today, that’s not the case, as the PHLX Semiconductor Index (SOX) is up 2.1% year to date. Other observers say that the company’s role as a dominant player in the wafer-level chip segment could result in better-than-expected earnings results. (See also: 4 Stock Picks That Will Shine in 2018: Epoch Investment.)
Applied Materials has a favorable P/E ratio of 15.17, but its dividend yield is a paltry 0.83%. …read more
Read more here: Applied Materials Reports in Correction Territory