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ASML (ASML) Stock Sinks As Market Gains: Here's Why

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ASML (ASML - Free Report) closed at $726.74 in the latest trading session, marking a -0.15% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.46%.

The the stock of equipment supplier to semiconductor makers has fallen by 1.1% in the past month, leading the Computer and Technology sector's loss of 5.94% and the S&P 500's loss of 3.59%.

Market participants will be closely following the financial results of ASML in its upcoming release. In that report, analysts expect ASML to post earnings of $6.12 per share. This would mark year-over-year growth of 81.07%. Meanwhile, our latest consensus estimate is calling for revenue of $8.08 billion, up 40.65% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $25.37 per share and a revenue of $34.34 billion, indicating changes of +21.85% and +12.41%, respectively, from the former year.

Investors might also notice 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.79% upward. At present, ASML boasts a Zacks Rank of #3 (Hold).

Investors should also note ASML's current valuation metrics, including its Forward P/E ratio of 28.68. This valuation marks a premium compared to its industry's average Forward P/E of 25.77.

Also, we should mention that ASML has a PEG ratio of 1.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 1.26 as trading concluded yesterday.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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