ASML (ASML) closed the most recent trading day at $375.80, moving +1.54% from the previous trading session. This move lagged the S&P 500's daily gain of 1.74%. At the same time, the Dow added 1.91%, and the tech-heavy Nasdaq gained 1.88%.
Heading into today, shares of the equipment supplier to semiconductor makers had gained 6.55% over the past month, outpacing the Computer and Technology sector's loss of 1.67% and the S&P 500's loss of 1.86% in that time.
ASML will be looking to display strength as it nears its next earnings release. On that day, ASML is projected to report earnings of $2.58 per share, which would represent year-over-year growth of 55.42%. Our most recent consensus estimate is calling for quarterly revenue of $4.25 billion, up 28.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.62 per share and revenue of $15.32 billion, which would represent changes of +25.11% and +15.43%, respectively, from the prior year.
Any recent changes to analyst estimates for ASML should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. ASML is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that ASML has a Forward P/E ratio of 42.94 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.85.
It is also worth noting that ASML currently has a PEG ratio of 1.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.24 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% 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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