Applied Materials (AMAT) Offering Possible 14.81% Return Over the Next 23 Calendar Days

Applied Materials's most recent trend suggests a bullish bias. One trading opportunity on Applied Materials is a Bull Put Spread using a strike $110.00 short put and a strike $100.00 long put offers a potential 14.81% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $110.00 by expiration. The full premium credit of $1.29 would be kept by the premium seller. The risk of $8.71 would be incurred if the stock dropped below the $100.00 long put strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Applied Materials is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Applied Materials is bullish.

The RSI indicator is at 65.09 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Applied Materials

5 Reasons to Love Applied Materials Even at All-Time Highs
Sun, 21 Feb 2021 16:29:00 +0000
Can you buy this semicap equipment leader even after its recent surge? Step back and take a look at the big picture.

Applied Materials Posts Blowout Quarter; Shares Gain 5%
Sun, 21 Feb 2021 08:10:35 +0000
Shares of Applied Materials popped 5.3% on Friday after the semiconductor equipment vendor reported better-than-expected 1Q results. Additionally, the company forecasted 2Q guidance that topped the Street’s estimates. Applied Materials (AMAT) reported adjusted earnings of $1.39 per share, which beat analysts’ estimates of $1.28 per share and jumped 42% year-over-year, driven by top-line growth and improved gross and operating margins. Its 1Q revenues grew 24% year-over-year to about $5.16 billion and came in marginally ahead of the consensus estimates of $4.97 billion. The company’s CEO Gary Dickerson said, “In our first fiscal quarter, we’ve seen a continued acceleration of demand in our semiconductor business as major macro and industry trends fuel increasing consumption of silicon across a wide range of markets and applications.” As for 2Q, the company expects to generate revenues in the range of $5.19-$5.59 billion, with the midpoint of $5.39 billion coming in higher than analysts’ expectations of $4.96 billion. Applied Materials anticipates 2Q earnings in the range of $1.44-$1.56 per share, compared to consensus estimates of $1.28. (See Applied Materials stock analysis on TipRanks) Following the stellar results, Susquehanna analyst Mehdi Hosseini raised the stock’s price target to $132 (10.5% upside potential) from $106 and maintained a Buy rating. In a note to investors, Hosseini said, “We have increased our P/E and EBITDA multiples due to incremental confidence on higher than expected TAM [total addressable market] opportunities in 2021, sustainability of share gains and prudent cost controls, all while FCF [free cash flow] margin is expected to remain above 20%. Such FCFs are then expected to help fund capital returns and future accretive acquisitions.” Overall, the rest of the Street has a bullish outlook on the stock, with a Strong Buy consensus rating based on 19 Buys and 3 Holds. The average analyst price target of $133.95 implies upside potential of about 12% to current levels. Shares have skyrocketed over 85% over the past year. Furthermore, AMAT scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Related News:Frontdoor’s 2021 Revenue Outlook Tops Estimates After 4Q BeatFastly’s 1Q Guidance Disappoints; Shares Sink Over 15%Arista Networks’ 1Q Sales Outlook Exceeds Street Estimates; Shares Gain 5% More recent articles from Smarter Analyst: ITT’s 4Q Results Beat Analysts’ Estimates On Cost Control; Shares Gain 2% Trade Desk Gains 7% On 4Q Earnings Beat, Strong Outlook Deere Pops 10% As 1Q Profit More Than Doubles DraftKings: The Trends Suggest Strong Growth, Says Analyst

US STOCKS-Wall Street supported by rise in cyclical stocks
Fri, 19 Feb 2021 19:44:59 +0000
Stocks on Wall Street tradednear breakeven on Friday as investors sold technology shares androtated into economically sensitive cyclical stocks inanticipation the U.S. economy will boom on pent-up demand oncethe coronavirus pandemic is subdued. Industrials led rising sectors in the S&P 500,spurred by a 10.2% surge in Deere & Co and Caterpillar's5.3% gain to an all-time peak. The S&P 1500 airlines index also soared 3.8%,with post-pandemic travel in focus.

The Nasdaq's Big Friday Winner Wants to Be China's Top EV Stock
Fri, 19 Feb 2021 19:20:00 +0000
The stock market continued to be choppy on Friday, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) struggled to hold onto its ground. After being up sharply in the morning, the Nasdaq dropped into negative territory briefly in the afternoon before rebounding. Meanwhile, Applied Materials (NASDAQ: AMAT) was also a top performer on Friday.

Applied Materials Stock Is Headed to a New High. Here’s Why.
Fri, 19 Feb 2021 18:57:00 +0000
The equipment supplier makes tools needed to grow production capacity to meet the global shortage of chips.

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