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Applied Materials a Big Growth Target Going Forward

By:
Lucas Downey
Published: May 21, 2024, 18:11 GMT+00:00

Applied Materials, Inc. (AMAT) has four straight quarters of earnings upside surprises, averaging 8.15% outperformance in that time.

Nasdaq Sphere. FX Empire

In this article:

And that could continue in fiscal 2025 as the consensus earnings estimate for AMAT calls for a rise of 13.2%.

AMAT is a leading materials engineering solutions provider focused on semiconductor chips and advanced displays. Some of its biggest customers are planning to expand and world governments have announced funding for more semiconductor manufacturing capacity.

It’s no wonder AMAT shares are up 36% in 2024 so far – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Applied Materials Shares Eyed by Big Money

Institutional volumes reveal plenty. In the last year, AMAT has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in AMAT shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.mapsignals.com

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental backdrop going on with Applied Materials.

Applied Materials Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, AMAT has had impressive sales and EPS growth in recent years:

  • 3-year sales growth rate (+16.1%)
  • 3-year EPS growth rate (+29.5%)

Source: FactSet

EPS is estimated to ramp higher this year by +15.2%.

Now it makes sense why the stock has been powering to new heights. AMAT has a track record of solid financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Applied Materials has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report many times in the last year. The blue bars below show when AMAT was a top pick…pushing higher along the way:

Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most superstar stocks exhibit…the best of the best. Big Money demand drives stock value.

Applied Materials Price Prediction

The AMAT rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in AMAT at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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