ASML (ASML) closed the most recent trading day at $476.18, moving +0.83% from the previous trading session. This change outpaced the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq gained 0.51%.
Heading into today, shares of the equipment supplier to semiconductor makers had gained 10.56% over the past month, outpacing the Computer and Technology sector's gain of 6.68% and the S&P 500's gain of 4% in that time.
ASML will be looking to display strength as it nears its next earnings release, which is expected to be January 20, 2021. In that report, analysts expect ASML to post earnings of $2.91 per share. This would mark a year-over-year decline of 2.35%. Our most recent consensus estimate is calling for quarterly revenue of $4.38 billion, down 2.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.21 per share and revenue of $15.73 billion. These totals would mark changes of +33.67% and +18.55%, respectively, from last year.
Any recent changes to analyst estimates for ASML should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.21% higher. ASML is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, ASML is holding a Forward P/E ratio of 51.28. This represents a premium compared to its industry's average Forward P/E of 20.41.
It is also worth noting that ASML currently has a PEG ratio of 2.49. 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. ASML's industry had an average PEG ratio of 1.76 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% 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.
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