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

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In the latest trading session, ASML (ASML) closed at $746.82, marking a +1.95% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.83%.

Prior to today's trading, shares of the equipment supplier to semiconductor makers had lost 14.63% over the past month. This has lagged the Computer and Technology sector's loss of 7.26% and the S&P 500's loss of 3.68% in that time.

Investors will be hoping for strength from ASML as it approaches its next earnings release, which is expected to be October 20, 2021. On that day, ASML is projected to report earnings of $4.67 per share, which would represent year-over-year growth of 57.77%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16 per share and revenue of $22.27 billion. These totals would mark changes of +65.12% and +38.75%, respectively, from last 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.

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. The Zacks Consensus EPS estimate has moved 0.27% lower within the past month. ASML currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that ASML has a Forward P/E ratio of 45.78 right now. Its industry sports an average Forward P/E of 18.78, so we one might conclude that ASML is trading at a premium comparatively.

Investors should also note that ASML has a PEG ratio of 1.38 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 0.97 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 198, putting it in the bottom 23% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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