ASML (ASML) Declines More Than Market: Some Information for Investors
In the latest trading session, ASML (ASML) closed at $959.78, marking a -0.93% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.3%.
Coming into today, shares of the equipment supplier to semiconductor makers had gained 4.8% in the past month. In that same time, the Computer and Technology sector gained 3.61%, while the S&P 500 gained 4.42%.
The upcoming earnings release of ASML will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.85, reflecting a 46.33% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.73 billion, showing a 20.88% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $20.45 per share and a revenue of $30.46 billion, demonstrating changes of -5.02% and +2.2%, respectively, from the preceding year.
Any recent changes to analyst estimates for ASML should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.12% upward. ASML presently features a Zacks Rank of #3 (Hold).
Digging into valuation, ASML currently has a Forward P/E ratio of 47.37. Its industry sports an average Forward P/E of 29.75, so one might conclude that ASML is trading at a premium comparatively.
Investors should also note that ASML has a PEG ratio of 2.34 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ASML's industry had an average PEG ratio of 2.91 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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ASML Holding N.V. (ASML) : Free Stock Analysis Report
