AMAT

Applied Materials (AMAT) reported Q3 fiscal 2026 Semiconductor Systems revenues of $7.04 billion, up 27% year-over-year, with operating margins expanding to 38%. The company forecasts Q4 revenues of $7.9 billion, up 62% YoY, driven by strong demand for advanced chips in AI infrastructure. However, AMAT's stock has surged 59.1% YTD and now trades at a premium valuation of 7.11X P/S versus the industry average of 4.63X.

Applied Materials (AMAT) declined 1.97% to $404.98, underperforming the broader market which gained 0.28%. The stock has lost 11.01% prior to today's trading.

However, the company is expected to report strong earnings on November 12, 2026, with projected EPS of $4.06 (up 87.10% YoY) and revenue of $10.3 billion (up 51.4% YoY). AMAT currently holds a Zacks Rank #3 (Hold) with a Forward P/E of 32.3 and PEG ratio of 1.15.

Applied Materials (AMAT) has been a trending stock but faces near-term headwinds. The stock declined 7.9% over the past month, underperforming the S&P 500's +1.5% gain. While the company shows strong fundamentals with expected earnings growth of +35.8% for the current fiscal year and consistent beats on both EPS and revenue estimates, it carries a Zacks Rank #3 (Hold) rating and trades at a premium valuation (Grade D) relative to peers, suggesting it may perform in line with the broader market.