ASML (ASML) Dips More Than Broader Markets: What You Should Know
In the latest trading session, ASML (ASML) closed at $591.84, marking a -1.99% move from the previous day. This change lagged the S&P 500's 0.03% loss on the day. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the equipment supplier to semiconductor makers had gained 27.28% in the past month. In that same time, the Computer and Technology sector gained 4.69%, while the S&P 500 gained 6.23%.
Wall Street will be looking for positivity from ASML as it approaches its next earnings report date. The company is expected to report EPS of $4.40, down 12.18% from the prior-year quarter.
ASML's full-year Zacks Consensus Estimates are calling for earnings of $14.13 per share and revenue of $20.65 billion. These results would represent year-over-year changes of -13.84% and -6.07%, respectively.
Investors might also notice recent changes to analyst estimates for ASML. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 2.54% higher within the past month. ASML is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ASML has a Forward P/E ratio of 42.74 right now. For comparison, its industry has an average Forward P/E of 14.98, which means ASML is trading at a premium to the group.
Meanwhile, ASML's PEG ratio is currently 1.8. 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 1.8 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 181, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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ASML Holding N.V. (ASML) : Free Stock Analysis Report
