Applied Materials is a longtime leader among chip-gear makers. It makes equipment that enables chip companies to keep making smaller, more powerful semiconductors. Despite last year's bear market Applied Materials posted profit and sales growth every quarter. And on Tuesday the Relative Strength Rating for Applied Materials stock climbed 7 points to 74.
The 74 RS Rating means that Applied Materials stock has bested 74% of all stocks on price performance this past year. Research shows that the best stocks tend to have an 80 or higher RS Rating in the early stages of their moves. See if Applied Materials can continue to show renewed price strength and clear that threshold.
Among its other major ratings, Applied Materials stock has a strong 90 Composite Rating, out of 99, and an 84 Earnings Per Share Rating. Additionally, it carries a B Accumulation/Distribution Rating on an A+ to E scale. The B A/D Rating shows that big investors such as ETFs and mutual funds are fairly aggressive buyers.
Applied Materials Stock Rises On Backlog, Services
Last Thursday Applied Materials reported fiscal first quarter 2023 results. The company reported a mild 7% rise in earnings to $2.03 per share, on a 7% increase in sales, to $6.74 billion. However, CEO Gary Dickerson says the company is in good shape.
"While the economy and semiconductor industry are facing challenges in 2023, Applied Materials delivered strong first quarter results," Dickerson said in the earnings release. He added that "We believe Applied is well positioned to outperform our markets this year." Dickerson cited strong positions "with leading customers at key technology inflections" and a large backlog of differentiated products. He added that the company's service business is growing.
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Meanwhile, Applied Materials stock dropped to an intraday low 71.28 in mid-October. From there it shot up about 100% to a 142.92 high on Feb. 2. It traded at about 111 Tuesday afternoon, down for the day. See if AMAT stock goes on to form and break out from a proper base such as a three-weeks-tight pattern.
Chip Gear Group In Top Quartile
Applied Materials stock earns the No. 7 rank among its peers in the Electronics-Semiconductor Equipment industry group. Axcelis Technologies and Lam Research are also among the group's highest-rated stocks. The group itself ranks a decent No. 44 on IBD's list of 197 industries. That puts it in the top quartile, where the top watchlist candidates are.
When looking for the best stocks to buy and watch, a key indicator is relative price strength. IBD's proprietary Relative Strength Rating measures market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
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