In the latest trading session, ASML (ASML) closed at $1,036.31, marking a +2.06% move from the previous day. This move outpaced the S&P 500's daily gain of 0.79%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 1.38%.
Coming into today, shares of the equipment supplier to semiconductor makers had lost 2.3% in the past month. In that same time, the Computer and Technology sector lost 0.85%, while the S&P 500 gained 0.87%.
The investment community will be closely monitoring the performance of ASML in its forthcoming earnings report. The company is predicted to post an EPS of $8.84, indicating a 21.1% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11.06 billion, indicating a 11.9% growth compared to the corresponding quarter of the prior year.
ASML's full-year Zacks Consensus Estimates are calling for earnings of $29.01 per share and revenue of $37.64 billion. These results would represent year-over-year changes of +39.34% and +23.21%, respectively.
Investors should also note any recent changes to analyst estimates for ASML. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Currently, ASML is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, ASML currently has a Forward P/E ratio of 35. This indicates a premium in contrast to its industry's Forward P/E of 33.91.
It is also worth noting that ASML currently has a PEG ratio of 1.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 1.28.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 6, finds itself in the top 3% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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ASML Holding N.V. (ASML): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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