ASML (ASML) closed at $499.88 in the latest trading session, marking a -1.97% move from the prior day. This change lagged the S&P 500's daily loss of 0.67%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the equipment supplier to semiconductor makers had lost 11.23% over the past month, lagging the Computer and Technology sector's gain of 4.81% and the S&P 500's gain of 3.65% in that time.
Investors will be hoping for strength from ASML as it approaches its next earnings release.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.65 per share and revenue of $20.76 billion, which would represent changes of -16.77% and -5.58%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ASML. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 4.43% lower. ASML is currently a Zacks Rank #4 (Sell).
Digging into valuation, ASML currently has a Forward P/E ratio of 37.35. This valuation marks a premium compared to its industry's average Forward P/E of 14.54.
We can also see that ASML currently has a PEG ratio of 1.66. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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