Applied Materials (NASDAQ:AMAT) Rapid Decline, Yet Company Still Strong

NEW YORK After a report stating that the merger between Applied Materials (AMAT) and Tokyo Electron (TOELY) was being opposed by the Chinese authorities, Applied Materials (AMAT) stock fell -1% to $22.68. Our sources say Chinese regulators have strongly opposed the planned merger.

However, both companies have signified that the merger is still expected to take place. According to a note that was given to investors, Stifel analyst, Patrick Ho, has indicated that the validity of the report is dubious and based on assumptions.

APPLIED MATERIALS INC (NASDAQ:AMAT) has been ranked as a Buy by the Stocks.org team and has a B+ ratings score. According to the Stocks.org Team, they ranked APPLIED MATERIALS INC (AMAT) as a Buy because it has some significant strengths which would probably have a more positive effect than its weaknesses. This would provide an improved performance to investors than most of the stocks covered by Stocks.org team. There are numerous areas like its reasonable debt levels, mostly solid financial position, sturdy stock price performance, significant earnings per share growth record, convincing net income growth and growth in revenue in which the company has shown strengths. Consequently, it is improbable that any minor weaknesses would substantially affect the results.

We want to state the following highlights:

The revenue growth of AMAT has overtaken the 9.6% industry average by a small margin. There is 19.3% increase in revenues when compared to the same quarter the year before. This revenue growth has been instrumental in lifting the earnings per share.
AMAT has a low 0.26 debt-to-ratio equity which is below industry average, indicating the debt levels have been managed successfully. In addition, AMAT’s 1.58 quick ratio signifies its ability to protect its short-term liquidity requirements.
Moving forward with a solid 290.90% earnings growth along with a number of significant motivating influences, stock has risen by 38.88 since the previous year which has overtaken the S&P 500 Index’s upsurge in the same quarter. As for the future of the stock, if there is a drop in the broad market, any stock can plummet. However, it is thought that AMAT will continue it’s upwards move even though it has already attained a good gain over the year.
When compared to the same period last year, APPLIED MATERIALS INC (AMAT) has indicated a noteworthy progress in its earnings per share, and shown a solid earnings per share growth pattern. TheStreet Ratings team believes this upward trend will remain. The last fiscal year has shown an increase in APPLIED MATERIALS INC (AMAT)’s bottom line after it earned $0.21 as compared to last year’s $0.06. In the present fiscal year, the market believes the earnings ($1.06 versus $0.21) are anticipated to improve.
During the same period in the previous year, the net income growth of 303.1% has considerably surpassed that of the Semiconductors & Semiconductor Equipment industry and the S&P 500, growing from -$129.00 million to $262.00 million.