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

Zacks Equity Research
·3 min read

In the latest trading session, ASML (ASML) closed at $471.59, marking a +0.49% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.18%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.5%.

Prior to today's trading, shares of the equipment supplier to semiconductor makers had gained 10.04% over the past month. This has outpaced the Computer and Technology sector's gain of 5.57% and the S&P 500's gain of 3.22% in that time.

ASML will be looking to display strength as it nears its next earnings release. 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 $9.10 per share and revenue of $15.73 billion. These totals would mark changes of +32.08% and +18.55%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ASML. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ASML is currently a Zacks Rank #3 (Hold).

Digging into valuation, ASML currently has a Forward P/E ratio of 51.57. This represents a premium compared to its industry's average Forward P/E of 20.95.

Meanwhile, ASML's PEG ratio is currently 2.35. 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 1.81 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 41, putting it in the top 17% 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.

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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Zacks Investment Research