Applied Materials (AMAT) Offering Possible 29.2% Return Over the Next 15 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 $50.00 short put and a strike $45.00 long put offers a potential 29.2% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $50.00 by expiration. The full premium credit of $1.13 would be kept by the premium seller. The risk of $3.87 would be incurred if the stock dropped below the $45.00 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 78.16 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

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LATEST NEWS for Applied Materials

Buy MU Stock on Any Weakness Because Micron Has Turned the Corner
Tue, 30 Jul 2019 12:38:35 +0000
More than once this year, I've cautioned investors about the pitfalls of trading Micron Technology (NASDAQ:MU). Though the memory chip glut was sure to come to an end as the past couple of them did, MU stock was apt to remain plagued by doubts, even against a backdrop of decidedly bullish news, I wrote.I'm finally shifting gears now. Though I'm still concerned about near-term ebbs and flows that could prove unsettling to new investors, it's arguable that Micron stock has mostly shrugged off what ailed it and has entered a new paradigm.And it's not just a feeling, nor is it an idea solely inspired by Goldman Sachs' recent (and significant) upgrade of Micron stock.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy With Over 20% Upside From Current Levels Micron Stock, Other Chip Stocks UpgradedGoldman announced a sweeping wave of upgrades that included MU's rival Western Digital (NASDAQ:WDC), along with technology sector peers Applied Materials (NASDAQ:AMAT), Lam Research (NASDAQ:LRCX) and KLA (NASDAQ:KLAC). Goldman Sachs analyst Mark Delaney explained:"We are now more positive on global memory stocks as we believe that the excess inventory memory companies are carrying will be depleted faster than our previous expectations, primarily in NAND flash as a result of the Toshiba Memory Corporation (TMC) fab outage that has disrupted a mid single digit percent of annual industry production (and to a lesser extent incremental capex/utilization cuts)."The industry's underpinnings, Delaney believes, have set the stage for higher NAND prices through the third quarter. The same tide is proving beneficial to names outside the memory market too, added Goldman analyst Toshiya Hari.Micron is being viewed as a standout, though. Delaney pointed to shrinking inventory levels and an accelerated depletion of inventories, stating "We believe that Micron is the best stock to express our view."Arguably most important to current and would-be owners of MU stock, Delany notes, "…we believe that Micron's stock will trade more on memory pricing trends and intermediate term EPS expectations than FY20 earnings."If he's right — and he likely is — the uptrend that took shape beginning in late June could indeed be the rekindled rebound effort by MU stock that first started to materialize early this year. Memory Prices Are Already RisingIn general, analysts have the clout and funding needed to acquire (or aggregate) data the average investor can't. Goldman Sachs based its upgrade on data it was able to ferret out from within the memory and chip market.Subtle signs of the memory market's turnaround were already starting to materialize, though.One of those signs was a slight rebound in DRAM prices following a multi-month decline from the peak pricing seen in early 2018. Sixteen gigabytes worth of DDR4-2400 DRAM memory chips, for instance, sold for a little over $200 in February of 2018, but fell to around $90 early this month. Now it's back above $100.That is not a game-changing price increase, but it is the biggest upward move in DRAM prices in nearly two years. Click to EnlargeNAND pricing, which Delaney specifically mentioned, is also already on the mend. A 512-gigabyte solid state drive from Intel (NASDAQ:INTC), priced at nearly $200 in September of 2017, fell to a low price of $77 in April of this year but has since snapped back to $88. Click to EnlargeAs was the case with DRAM, that was the best, steadiest price increases of NAND, also known as "flash" memory, in more than a couple of years.That's only anecdotal evidence, but it's in-line with data that Goldman Sachs' Micron analysts also identified. The Bottom Line on MU StockThe data, and the relative lack of commentary on it, underscores something I've explained several times over the course of the last year. That is, most investors won't see the end of the memory glut taking shape until well after it's arrived. And even then, the early part of that rebound will be mistrusted.That was certainly the case in 2013 and then again in 2016, when similar gluts came to an end. When they started fading, nobody noticed until months later. As was the case in 2013 and 2016, though, the rebound of MU stock earlier this year indicated that the glut was already abating. Anyone who doesn't think the same phenomenon is happening again now is naive.There's no guarantee that Micron stock will only rise from now on. The odds are good, in fact, that MU will retreat at some point as profit-takers seek to lock in their July gains.Investors would be wise to buy MU stock on any healthy dip, however, even if it feels a bit uncomfortable to do so. The memory market's recent dynamics are awfully familiar.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Small-Cap Stocks to Buy Before They Grow Up * 7 Stocks to Buy With Over 20% Upside From Current Levels * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Buy MU Stock on Any Weakness Because Micron Has Turned the Corner appeared first on InvestorPlace.

Applied Materials (AMAT) Stock Moves -0.14%: What You Should Know
Mon, 29 Jul 2019 21:45:09 +0000
Applied Materials (AMAT) closed at $50.67 in the latest trading session, marking a -0.14% move from the prior day.

A Spotlight On Applied Materials, Inc.'s (NASDAQ:AMAT) Fundamentals
Mon, 29 Jul 2019 10:55:34 +0000
I've been keeping an eye on Applied Materials, Inc. (NASDAQ:AMAT) because I'm attracted to its fundamentals. Looking…

Goldman Sachs Is Upgrading These 4 Tech Stocks
Thu, 25 Jul 2019 14:38:36 +0000
Tech stocks are having a moment. Investors have shaken off regulatory concerns to propel tech stocks higher, with the tech-heavy Nasdaq index up a whopping 25% year-to-date. Chip stocks are also enjoying a relief rally after US-China trade tensions sparked heavy selling in 4Q18. And in its wake comes the S&P 500, now up 20% since the start of the year. Goldman Sachs isn't immune to this increasingly bullish sentiment. The firm has just released a rash of tech upgrades. Mostly firms reiterate recommendations- so a rating change speaks volumes about how a firm perceives a stock’s outlook (or, indeed, a sector). So which four tech stocks is Goldman Sachs re-evaluating right now? Let’s take a closer look, and see whether the Street agrees with this newly positive outlook… Snap Inc (SNAP)Five-star Goldman Sachs analyst Heath Terry has just upgraded disappearing photo app Snap. New hyper-realistic augmented-reality filters could lead SNAP to positively surprise in the coming quarters says Terry. His new buy rating comes with a $18 price target- which still only suggests 2% upside potential from current levels. That’s due to SNAP’s better-than-expected earnings results, which sent shares surging over 20%. Revenue growth accelerated (to 48% year-over-year), daily active user (DAU) growth turned sharply positive, Gross Margin expanded nicely, and EBITDA loss narrowed materially. “Our checks with advertisers also lead us to believe that the company’s continued innovation in its ad-stack, particularly in self-serve, should allow Snap to substantially improve monetization of user time spent on the platform over time,” Terry stated.Overall, the Street shows a cautiously optimistic Moderate Buy consensus on SNAP. Out of 22 analysts covering the stock, 9 rate SNAP a buy, 11 a hold and 2 say sell. Meanwhile the average analyst price target stands at $17- indicating 4% downside from current levels. Stitch Fix Inc (SFIX)Online personal shopping service Stitch Fix also gets the Terry thumbs up. The analyst upgraded the fashion stock on July 21 with a $38 price target. Even though shares have already climbed 60% year-to-date, Terry’s price target still indicates upside potential of 39%.Terry wasn’t deterred by SFIX’s slowing active client growth, writing: “we believe product innovation, operational efficiencies, and geographic expansion, combined with the increase in retail store closures (particularly in apparel) represent significant opportunities for further outperformance.” He spies ‘compelling upside potential’ from Stitch’s expansion plans- including the recent UK launch and the new men’s, children’s, and plus-sized offerings. Notably Goldman Sachs isn’t the only firm upgrading SFIX stock. Stifel Nicolaus’ Scott Devitt also notched his rating up to buy on July 22. With a $35 price target, Devitt explained: “We are confident in management’s ability to drive healthy ARPU growth in the intermediate term by continuing to improve keep rates through stronger personalization (Style Shuffle), high-quality client adds, and healthy retention.”Although SFIX shows a Moderate Buy Street consensus, if we look at only the best-performing analysts this consensus shifts to Strong Buy. The top analyst average price target stands at $38.80. Applied Materials (AMAT)Chip-making equipment stock Applied Materials has surged 59% year-to-date. Top Goldman Sachs analyst Toshiya Hari gave the stock a boost on July 22 with his ratings upgrade. He also raised the stock’s price target from $48 to $56 (7% upside potential). And most importantly- he added AMAT to the firm’s Conviction Buy List of top stock picks. The move came thanks to Hari’s increasingly optimistic take on the chip sector as a whole. Hari now forecasts the WFE [wafer fab equipment] market to grow 7% year over year in 2020, up from the previous prior assumption of flat year over year."Not only have the memory producers reduced capex over the last 4 quarters, but they have also made adjustments to their factory utilization rates to combat the on-going challenging environment, and while the memory WFE market is likely to remain weak in 2H19, we now expect fundamentals to improve earlier than our prior expectations," Hari told investors. However the rebound may take some time to materialize. “While visibility is limited in the near term…we believe disciplined supply-side actions from the memory manufacturers…coupled with recent supply-side disruptions will drive…an improvement in memory supply/demand sooner than previously expected” the analyst concluded. The Street currently has a Strong Buy consensus on AMAT with a $51 average price target (2% downside potential). Analog Devices (ADI)AMAT isn’t the only stock Hari is upgrading. He also issued a rare double upgrade for multinational semiconductor stock Analog Devices- taking ADI all the way from Sell to Buy. That’s with a $114 price target (9% downside potential). "First and foremost, we acknowledge that our Sell thesis on the stock – which was predicated on our guarded view towards the analog semiconductor cycle and relatively stretched valuation – has not worked," Hari admitted to investors."ADI, in our view, has exposure to multiple idiosyncratic revenue drivers," the analyst continued. "Specifically, we believe ADI's disproportionate exposure to the Comms Infrastructure end-market coupled with content gain opportunities in Automotive will drive growth that exceeds peers in the analog semiconductor space."Out of 11 analysts covering the stock, 8 rate ADI a buy, and 3 rate the stock a hold. However the average analyst price target of $116 is 7% lower than the current share price of $125. Note that the stock is currently up 45% year-to-date.

Tech Stocks Drove the Nasdaq to New Heights Today
Wed, 24 Jul 2019 20:50:48 +0000
Tech stocks are driving today's stock market rally. As of 3:52 PM ET, the tech-heavy the Nasdaq Composite Index is up 0.81%, driven by a surge in tech stocks.

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