AMAT.
AMAT certainly ticks ALL my boxes. It's P/E is slightly high but I guess that's due to a slight recent fall off in its Net Income, for reasons referred to below, which decreases its EPS and therefore increases its P/E ratio.
It has very low debt and its related expense is also low.
It has a healthy Net Income% of ~24%.
Its F-Score is good at 7.
Its current price of ~$162 is well below Buffett's target of $201 ---->
Looking at its 4 Inc. Statement LTM trends, we see that "Total Revenue" and "Operating Income" have been trending regularly upwards. Pretax Inc. fell between 9 to 6 months ago due to Loss on Sales of Investments, but has since recovered.
Falls in Net Incomes 9 to 12 months ago were due to Increases in Tax Expenses. But since then Net Incomes have increased. These latest Net Income values could explain the slight rise in its P/E ----->
Looking at the "Market's" reaction, we see AMAT coming off a recent Support Level S2 which lines up with a previous Resistance at R1, where S2 is up from its previous support at S1.
So bearing in mind that its price is below the BUY target of $201 it could be that AMAT's price moves up in the direction of R2 at around $230, a possible healthy 30% to 50% price increase --->
Of course, what happens with regard to the "China factor" is anybody's guess. All that one can go on at the present time, IMO, is the state of the company's Financials, which I would say are very healthy ..... |
