Applied Materials (NASDAQ:AMAT) has been trading in a wide sideways trading range where it has formed a level of support and a line of resistance. If the stock breaks through either level, a big move could be in store. Read more to learn how to profit from this trade.Applied Materials (AMAT) is one of the world's largest suppliers of semiconductor manufacturing equipment, providing materials engineering solutions to help make nearly every chip in the world. The firm's systems are used in nearly every major process step with the exception of lithography.
The company is benefiting from strong momentum in Semiconductor Systems and Applied Global Services. Plus, AMAT is seeing strong demand for silicon in various applications across several markets. In addition, the growing usage of OLED technology in smartphones, TVs, and computers, should help support growth.
As of the end of the most recent quarter, the company had $6.5 billion in cash, which compares favorably to no short-term debt. As for growth, AMAT has shown strong earnings growth with earnings per share growing an average of 30.1% per year over the past five years. Analysts expect earnings to rise 56% year over year in the current quarter.