ASML (ASML) ended the recent trading session at $722.38, demonstrating a +0.53% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 1.24%.
Shares of the equipment supplier to semiconductor makers witnessed a gain of 9.1% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.43% and the S&P 500's gain of 1.17%.
The investment community will be paying close attention to the earnings performance of ASML in its upcoming release. The company is predicted to post an EPS of $7.19, indicating a 28.39% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.76 billion, indicating a 25.3% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $20.57 per share and revenue of $30.49 billion, which would represent changes of -4.46% and +2.29%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for ASML. 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 company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.96% lower within the past month. Currently, ASML is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, ASML is holding a Forward P/E ratio of 34.94. This valuation marks a premium compared to its industry's average Forward P/E of 34.26.
One should further note that ASML currently holds a PEG ratio of 2.1. 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 the market closed yesterday, the Semiconductor Equipment - Wafer Fabrication industry was having an average PEG ratio of 3.53.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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