Of 31 analysts covering Applied Materials, 21 have Buy or Strong Buy ratings and nine more have Hold ratings. At a recent price of around $121.00 a share, the implied upside based on a median price target of $135.00 is about 11.6%. At the high target of $150.00, the upside potential is almost 24%.
For the company’s second quarter of fiscal 2023, analysts anticipate revenue of $6.37 billion, which would be down 5.5% sequentially but up 7.5% year over year. Adjusted EPS are forecast at $1.83, down 10.0% sequentially and by 1.1% year over year. For the full fiscal year ending in October, analysts are forecasting EPS of $7.04, down 8.6%, on sales of $24.76 billion, down 4%.
The stock trades at 17.2 times expected 2023 EPS, 17.9 times estimated 2024 earnings of $6.75 and 14.5 times estimated 2025 earnings of $8.36 per share. Its 52-week trading range is $71.12 to $125.62. Applied Materials pays an annual dividend of $1.28 (yield of 1.06%). Total shareholder return over the past year was 10.52%.
Catalent
Contract drug maker Catalent Inc. (NYSE: CTLT) was originally scheduled to release quarterly results on May 9. That date was pushed out to May 15 and then pushed out again until early Friday morning. Catalent blames “certain accounting adjustments” related to its Indiana plant, an excuse that is almost always a red flag to investors.
Since early April, after the company first acknowledged issues at the Indiana plant, the share price has dropped by more than 50%. Over the past 12 months, the stock has dropped by about 67%. It is still possible that Catalent may have to restate earnings for fiscal 2022, something the company should want to avoid at all costs.
Of 16 analysts covering the stock, nine have Buy or Strong Buy ratings and six more rate it at Hold. At a share price of around $32.00, the implied upside based on a median price target of $55.00 is about 71.9%. At the high target of $90.00, the upside potential is 181%.
For the company’s most recent quarter, analysts expect revenue of $1.03 billion, down 10.5% sequentially and 18.9% lower year over year. Adjusted EPS are forecast at $0.32, down 51.7% sequentially and by 69.2% year over year. For the full 2023 fiscal year ending in June, analysts are looking for EPS of $2.29, down 40.3%, on sales of $4.35 billion, down 9.9%.
Catalent’s stock trades at 13.9 times expected 2023 EPS, 12.5 times estimated 2024 earnings of $2.54 and 10.0 times estimated 2025 earnings of $3.20 per share. The stock’s 52-week range is $31.25 to $115.33. The company does not pay a dividend, and total shareholder return over the past year was negative 67.38%.
Deere
Heavy equipment maker Deere & Co. (NYSE: DE) has seen its share price decline of 3.1% over the past 12 months. Since posting a 52-week low in early July, the stock has added nearly 28% more, although shares trade about 19% below their 52-week high. The consensus fiscal year EPS estimate shot up after Deere’s first-quarter report and has remained around $30.50 while the share price has declined by about 16%. The company reports quarterly results early Friday.
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