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ASML (ASML) Stock Moves -0.35%: What You Should Know

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ASML (ASML - Free Report) closed the latest trading day at $706.52, indicating a -0.35% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.61% for the day. On the other hand, the Dow registered a loss of 0.54%, and the technology-centric Nasdaq decreased by 0.62%.

The equipment supplier to semiconductor makers's stock has climbed by 5.9% in the past month, exceeding the Computer and Technology sector's gain of 3.41% and the S&P 500's gain of 2.85%.

Investors will be eagerly watching for the performance of ASML in its upcoming earnings disclosure. On that day, ASML is projected to report earnings of $7.20 per share, which would represent year-over-year growth of 28.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.76 billion, up 25.3% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $20.68 per share and a revenue of $30.49 billion, demonstrating changes of -3.95% and +2.29%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ASML. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.42% lower. ASML currently has a Zacks Rank of #3 (Hold).

In terms of valuation, ASML is presently being traded at a Forward P/E ratio of 34.28. This expresses a premium compared to the average Forward P/E of 33.96 of its industry.

Also, we should mention that ASML has a PEG ratio of 2.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Semiconductor Equipment - Wafer Fabrication industry stood at 3.52 at the close of the market yesterday.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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