In the latest close session, ASML (ASML) was down 1.83% at $1,423.99. The stock trailed the S&P 500, which registered a daily gain of 0.04%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.36%.
Shares of the equipment supplier to semiconductor makers witnessed a gain of 1.94% over the previous month, beating the performance of the Computer and Technology sector with its loss of 5.15%, and the S&P 500's loss of 1.33%.
The investment community will be closely monitoring the performance of ASML in its forthcoming earnings report. The company is forecasted to report an EPS of $7.61, showcasing a 20.6% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $10.21 billion, up 25.38% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $33.67 per share and a revenue of $43.44 billion, demonstrating changes of +20.47% and +17.49%, respectively, from the preceding year.
Any recent changes to analyst estimates for ASML should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.24% increase. ASML is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, ASML is presently being traded at a Forward P/E ratio of 43.08. For comparison, its industry has an average Forward P/E of 42, which means ASML is trading at a premium to the group.
We can also see that ASML currently has a PEG ratio of 1.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 1.88.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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ASML Holding N.V. (ASML): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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