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ASML (ASML) Outpaces Stock Market Gains: What You Should Know

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ASML (ASML) closed the most recent trading day at $871.24, moving +1.44% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.23%.

Coming into today, shares of the equipment supplier to semiconductor makers had gained 8.86% in the past month. In that same time, the Computer and Technology sector gained 2.74%, while the S&P 500 gained 0.65%.

Investors will be hoping for strength from ASML as it approaches its next earnings release. In that report, analysts expect ASML to post earnings of $4.67 per share. This would mark year-over-year growth of 57.77%.

ASML's full-year Zacks Consensus Estimates are calling for earnings of $16.04 per share and revenue of $22.27 billion. These results would represent year-over-year changes of +65.53% and +38.75%, respectively.

Investors should also note any recent changes to analyst estimates for ASML. These revisions help to show the ever-changing nature of 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. ASML is currently a Zacks Rank #2 (Buy).

Looking at its valuation, ASML is holding a Forward P/E ratio of 53.53. For comparison, its industry has an average Forward P/E of 19.53, which means ASML is trading at a premium to the group.

Also, we should mention that ASML has a PEG ratio of 1.6. 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 1.05 as of yesterday's close.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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