Yahoo Finance ASML (ASML) Gains As Market Dips: What You Should Know
ASML (ASML) closed at $804 in the latest trading session, marking a +1.58% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.18%. At the same time, the Dow lost 1.34%, and the tech-heavy Nasdaq lost 0.92%.
Prior to today's trading, shares of the equipment supplier to semiconductor makers had lost 2.53% over the past month. This has lagged the Computer and Technology sector's gain of 0.24% and the S&P 500's loss of 0.73% in that time.
ASML will be looking to display strength as it nears its next earnings release. On that day, ASML is projected to report earnings of $4.30 per share, which would represent year-over-year growth of 11.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.87 billion, up 15.73% from the year-ago period.
ASML's full-year Zacks Consensus Estimates are calling for earnings of $15.93 per share and revenue of $21.68 billion. These results would represent year-over-year changes of +64.4% and +35.07%, respectively.
It is also important to note the 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 shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ASML is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, ASML is currently trading at a Forward P/E ratio of 49.68. This represents a premium compared to its industry's average Forward P/E of 19.88.
We can also see that ASML currently has a PEG ratio of 1.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.49 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ASML in the coming trading sessions, be sure to utilize Zacks.com.
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