Here's Why Applied Materials (AMAT) is a Strong Growth Stock

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why This 1 Growth Stock Should Be On Your Watchlist

Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Applied Materials (AMAT)

Headquartered in Santa Clara, California, Applied Materials is one of the world’s largest suppliers of equipment for the fabrication of semiconductor, flat panel liquid crystal displays (LCDs), and solar photovoltaic (PV) cells and modules. The company also offers deployment and support services related to the equipment supplied.

AMAT boasts a Growth Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 8.2% year-over-year for 2025, while Wall Street anticipates its top line to improve by 6%.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0 to $9.36 per share. AMAT also boasts an average earnings surprise of 5.6%.

Applied Materials is also cash rich. The company has generated cash flow growth of 18.6%, and is expected to report cash flow expansion of 3.9% in 2025.

AMAT should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.

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Applied Materials, Inc. (AMAT) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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