ASML (ASML) closed at $1,485.76 in the latest trading session, marking a +1.1% move from the prior day. This change outpaced the S&P 500's 1.04% loss on the day. Elsewhere, the Dow saw a downswing of 1.66%, while the tech-heavy Nasdaq depreciated by 1.13%.
The equipment supplier to semiconductor makers's shares have seen an increase of 5.8% over the last month, surpassing the Computer and Technology sector's gain of 0.34% and the S&P 500's gain of 1.75%.
The investment community will be paying close attention to the earnings performance of ASML in its upcoming release. The company is expected to report EPS of $7.61, up 20.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.21 billion, up 25.38% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $33.63 per share and a revenue of $43.31 billion, demonstrating changes of +20.32% and +17.14%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ASML. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 7.92% higher within the past month. Right now, ASML possesses a Zacks Rank of #2 (Buy).
Investors should also note ASML's current valuation metrics, including its Forward P/E ratio of 43.7. For comparison, its industry has an average Forward P/E of 42.05, which means ASML is trading at a premium to the group.
It is also worth noting that ASML currently has a PEG ratio of 1.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.88 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 5, positioning it in the top 3% 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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