ASML (ASML) Dips More Than Broader Markets: What You Should Know
ASML (ASML) closed the most recent trading day at $577.55, moving -1.42% from the previous trading session. This change lagged the S&P 500's daily loss of 0.74%.
Coming into today, shares of the equipment supplier to semiconductor makers had lost 6.75% in the past month. In that same time, the Computer and Technology sector lost 7.96%, while the S&P 500 lost 4.6%.
Investors will be hoping for strength from ASML as it approaches its next earnings release. On that day, ASML is projected to report earnings of $1.89 per share, which would represent a year-over-year decline of 51.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.91 billion, down 25.72% from the year-ago period.
ASML's full-year Zacks Consensus Estimates are calling for earnings of $19.22 per share and revenue of $23.93 billion. These results would represent year-over-year changes of +17.2% and +8.84%, respectively.
Investors should also note any recent changes to analyst estimates for ASML. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.14% higher. ASML currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ASML has a Forward P/E ratio of 30.49 right now. For comparison, its industry has an average Forward P/E of 15.89, which means ASML is trading at a premium to the group.
We can also see that ASML currently has a PEG ratio of 1.83. 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 1.36 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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