Applied Materials is a magnet for big money
So what is Big Money? Simply put, this is when a stock goes up along with big volumes. This indicates that institutions are betting on stocks.
Not surprisingly, Applied Materials has many core qualities that are appealing.
This sets up nicely for the stock going forward. Paying attention to how stocks are trading suggests there could be more upside.
You see, fund managers are always looking to bet on the next outlier stock…best in class. They spend countless hours evaluating companies, reading reports, talking to analysts, and more. When they find a business that is going full steam ahead, they leapfrog.
YTD stock tells the story. Each green bar signals large buying volumes as the stock price rises:
Since January, the stock has attracted big Big Money buy signals. Recent green bars could mean more upside is ahead.
Now let’s see the technical action that caught my attention:
Outperformance is important for major stocks.
Fundamental analysis of applied materials
Next, it’s a good idea to check under the hood. That means I want to make sure the core story is solid as well. As you can see, AMAT has experienced double-digit sales and profit growth over the past 3 years:
Source: FactSet
Marrying great fundamentals with technically superior stocks is a winning recipe over the long term.
In fact, AMAT has been one of MAPsignals’ top-rated stocks for years. This means the stock has seen buying pressure, strong technicals and growing fundamentals. We have a ranking process that features actions like this on a weekly basis.
He’s made the rare Top 20 report multiple times since 2014. The blue bars below show when AMAT was a top pick:
Tracking unusual volumes reveals the power of the MAPsignals process.
Price forecast of applied materials
The AMAT rally has existed for years and only recently. Big Money buying the stocks signals that this needs to be taken into account. Given the historic share price gains and strong fundamentals, this stock could merit a place in a diversified portfolio.
Disclosure: The author does not hold any position with AMAT at the time of publication.
Learn more about the MAPsignals process here.
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This article originally appeared on FX Empire
