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Applied Materials Earnings: Analyst Upgrades Signal Tech Momentum

Next week's earnings reports are anticipated to provide market momentum, with Applied Materials (AMAT) being a key focus. Analysts have significantly upgraded AMAT's earnings estimates, citing a 54% increase over the last three months. Major firms like Morgan Stanley and Seaport Research have issued positive ratings and raised price targets, highlighting AMAT's strong position in the semiconductor supply chain. The stock has seen a substantial rally of 68% this year. Other companies, such as Constellation Energy and Ross Stores, are also scheduled to report results, following specific criteria for accelerated earnings momentum.

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Applied Materials Earnings: Analyst Upgrades Signal Tech Momentum

Upcoming earnings reports, including Applied Materials, are expected to provide a potential catalyst for select stocks next week, following a period of intense earnings activity. While only a limited number of S&P 500 and Dow Jones components are reporting results, several names are attracting positive analyst attention due to accelerating earnings momentum.

Applied Materials' Strong Analyst Momentum

Applied Materials (AMAT) is highlighted among the stocks reporting next week. Analysts have significantly increased their earnings estimates for the chipmaker, showing strong positive sentiment.

  • Estimate Increases: Analysts have raised their earnings estimates for AMAT by an average of 54% over the past three months and 46% over the past six months.
  • Brokerage Actions: Major financial institutions have issued positive ratings and price targets.
    • Morgan Stanley: Reiterated an 'overweight' rating and named AMAT a top pick. Analyst Shane Brett noted, "Expectations are not low for AMAT, but we think AMAT keeps pace with peers with another strong beat & raise." The new price target was set at $454, up from $432, implying an 11% gain from the previous close.
    • Seaport Research: Initiated coverage with a 'buy' rating and a $500 price target. Analyst Jay Goldberg stated, "We see AMAT as the best positioned of the global WFE suppliers." Goldberg also noted AMAT's broad tool offerings across deposition, etch, implant, CMP, and cleaning, suggesting an almost irreplaceable role in advanced semiconductors.

Screening Criteria and Market Context

CNBC Pro screened FactSet data to identify S&P 500 companies reporting next week that also showed accelerated earnings momentum. To qualify for this list, stocks needed to meet specific criteria:

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  • Earnings estimates revised up by at least 10% in the past three and six months.
  • An average analyst price target implying an upside of at least 10%.

As of the reporting, Applied Materials is the standout name. The semiconductor manufacturer's shares have rallied 68% year-to-date.

Other Stocks Reporting Next Week

Other companies included in the screening list for next week's reports include:

  • Constellation Energy: Expected to report earnings on Monday, though its stock is down 13% year-to-date.
  • Ross Stores: Scheduled to report on Thursday, with shares up 26% in 2026 (Note: Year discrepancy in source).
  • Steris: A healthcare stock that also appeared on the list.
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