AMAT stock verdict - Avoid
AMAT
Applied Materials, Inc.
AVOIDTechnology
$536.25
Overvalued (≥ exit)
$536.25
Heavy$180.61Buy$219.31Fair$258.01Exit$283.81
FUNDAMENTAL56
TECHNICAL52
TRUST SCORE
100High
confidence in this read — data completeness, earnings quality & coverage
Neutral · EMA20 567.69 · EMA50 536.95 · EMA200 396.48 · RSI 45.5 · MACD below signal
PROS
- Strong return on equity of 37.3% (TTM)
- TTM EPS grew 29.5% year-over-year
- Conservative balance sheet — debt-to-equity of 0.30
- Converts 18% of revenue into free cash flow
CONS
- Trades above the model's exit level ($283.81) — overvalued on this framework
- Expensive on trailing earnings (P/E 50.4×)
✳ Pros and cons are machine-generated from the latest fundamentals and technicals.
EARNINGS QUALITY · we check the accounting so you don't have to
✓Operating cash flow is 114% of net income — profit is backed by real cash
✓Low accruals — reported profit tracks the cash actually generated
✓Receivables growing in line with sales
Analysis as of 2026-07-27 · price live, fundamentals from latest filings
FAQ
Why is AMAT rated Avoid?
AMAT (Applied Materials, Inc.) is rated Avoid because the model combines fundamentals, price action, and earnings-quality checks. The current signal is Overvalued (≥ exit). Strong return on equity of 37.3% (TTM) and TTM EPS grew 29.5% year-over-year
Is AMAT overvalued right now?
AMAT is trading at $536.25 versus an estimated fair value of $258.01. That puts the stock in avoid territory on this framework. Trades above the model's exit level ($283.81) — overvalued on this framework and Expensive on trailing earnings (P/E 50.4×)
What should I watch before acting on AMAT?
Watch the trust score of 100, the earnings-quality checks, and any red flags. Trades above the model's exit level ($283.81) — overvalued on this framework and Expensive on trailing earnings (P/E 50.4×)