Zinger Key Points
- Applied Materials' mixed technicals show a bearish trend but with signs of potential upside ahead of Q3 earnings.
- Analysts see a 35.24% upside for Applied Materials stock, with a Buy rating and a $268.33 average price target.
Applied Materials Inc AMAT is up 39.48% over the past year, and 28.21% year-to-date.
Let’s look at what the charts indicate for the company’s stock ahead of third-quarter earnings, set to be released on Thursday after market hours.
Bearish Trend With Buying Pressure
Applied Materials’ stock is exhibiting a mixed technical picture. The current share price of $201.21 is below its five, 20 and 50-day exponential moving averages, indicating a strongly bearish trend.
Despite this, Applied Materials’ stock is showing some buying pressure, which could signal potential for future bullish movement.
Chart created using Benzinga Pro
The eight-day simple moving average (SMA) of $190.07 suggests a short-term bullish signal.
Applied Materials’ stock is also trading above the 20-day SMA of $199.98 and the 200-day SMA of $191.28, solidifying the bullish case for the stock over the near-term and long-term.
However, the share price is below the 50-day SMA of $221.86, indicating medium-term bearishness, suggesting investors exercise caution.
Chart created using Benzinga Pro
The Moving Average Convergence Divergence (MACD) indicator at -8.77 supports a bearish stance, while the Relative Strength Index (RSI) of 47.07 suggests the stock is dribbling against the oversold territory and might be poised for a rebound.
Additionally, the Bollinger Bands range from $168.04 to $247.62 and have the stock trading in their lower bearish band. Thus, this indicator also leans towards a bearish signal.
Overall, while a slight bearish trend co-exists with long-term bullishness, there are indicators suggesting potential upside if buying pressure continues.
Read Also: What’s Going On With Applied Materials Stock?
Applied Materials Analysts See 35% Upside
Ratings & Consensus Estimates: The consensus analyst rating on Applied Materials stock stands at a Buy currently with a price target of $218.26.
Recent analyst ratings from Citigroup, Cantor Fitzgerald and Stifel suggest a 35.24% upside for Applied Materials stock, with an average price target of $268.33.
Wall Street expects the company to report $2.02 in earnings per share and $6.7 billion in revenues for the third quarter.
AMAT Price Action: Applied Materials stock was trading at $198.41 at the time of publication.
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