ASML (ASML) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, ASML (ASML) closed at $789.40, marking a +1.43% move from the previous day. This move outpaced the S&P 500's daily gain of 0.75%.

Heading into today, shares of the equipment supplier to semiconductor makers had lost 12.29% over the past month, lagging the Computer and Technology sector's loss of 2.38% and the S&P 500's loss of 0.05% in that time.

Wall Street will be looking for positivity from ASML as it approaches its next earnings report date. This is expected to be October 20, 2021. On that day, ASML is projected to report earnings of $4.67 per share, which would represent year-over-year growth of 57.77%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.96 per share and revenue of $22.27 billion, which would represent changes of +64.71% and +38.75%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ASML. Recent revisions tend to reflect the latest 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.75% lower within the past month. ASML currently has a Zacks Rank of #4 (Sell).

Digging into valuation, ASML currently has a Forward P/E ratio of 48.78. Its industry sports an average Forward P/E of 19.46, so we one might conclude that ASML is trading at a premium comparatively.

We can also see that ASML currently has a PEG ratio of 1.47. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1 as of yesterday's close.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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