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ASML (ASML) Flat As Market Gains: What You Should Know

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In the latest trading session, ASML (ASML - Free Report) closed at $800.17, marking no change from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.75%. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 1%.

The equipment supplier to semiconductor makers's stock has dropped by 9.03% in the past month, falling short of the Computer and Technology sector's gain of 2.48% and the S&P 500's gain of 4.03%.

The investment community will be paying close attention to the earnings performance of ASML in its upcoming release. In that report, analysts expect ASML to post earnings of $5.47 per share. This would mark year-over-year growth of 4.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.66 billion, up 5.42% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.38 per share and a revenue of $30.18 billion, indicating changes of -5.34% and +1.25%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for ASML. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.39% rise in the Zacks Consensus EPS estimate. At present, ASML boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, ASML is currently exchanging hands at a Forward P/E ratio of 39.26. For comparison, its industry has an average Forward P/E of 25.33, which means ASML is trading at a premium to the group.

It is also worth noting that ASML currently has a PEG ratio of 1.96. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 2.09 as of yesterday's close.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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