At last close, ASML (ASML) reached $907.26, moving -0.05% from the previous day. This move lagged the S&P 500’s daily gain of 1.15%. The Dow, on the other hand, posted a gain of 1.14% and the tech-focused Nasdaq gained 1.47%.
To date, shares of the semiconductor equipment supplier had gained 5.23 percent in the past month, outperforming the Computer and Technology sector’s loss of 2.53 percent and the S&P 500’s gain of 0.27 percent during that period.
The investment community will be closely following ASML’s earnings performance in the upcoming release. The company’s upcoming earnings per share are estimated at $5.44, representing an increase of 4.02% from the year-ago quarter. Meanwhile, our current consensus estimate is projecting revenue of $7.66 billion, representing growth of 5.42% from the corresponding quarter last year.
ASML’s full-year Zacks Consensus Estimates are calling for earnings of $20.30 per share and revenue of $30.18 billion, which would represent year-over-year changes of -5.71% and +1.25%, respectively.
It is also important for investors to be aware of any changes to analyst estimates for ASML. Recent revisions usually reflect the latest near-term business trends, so we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate revisions are directly related to future stock price performance. Investors can take advantage of this by using the Zacks Rank. This model takes these estimate changes into account and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of exceeding expectations, as validated by outside audits. #1-ranked stocks have delivered an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus Estimate for earnings per share has not changed. ASML currently holds a Zacks Rank of #3 (Hold).
In terms of valuation, ASML is currently trading at a P/E ratio of 44.71, which represents a premium to the industry’s P/E ratio of 27.9.
We can also see that ASML currently has a PEG ratio of 1.92. The PEG ratio is similar to the commonly used P/E ratio, but this value also takes into account the company’s expected earnings growth rate. The Semiconductor Equipment – Wafer Fabrication segment had an average PEG ratio of 2.15 as of yesterday’s closing price.
The Semiconductor Equipment – Wafer Fabrication industry is part of the Computer & Technology sector. Currently, this industry has a Zacks Industry Rank of 100, putting it in the top 40% 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% of industries outperform the bottom half by a factor of 2 to 1.
Follow all these and many more stock-moving metrics on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Download the 7 best stocks for the next 30 days today. Click here to get this free report
ASML Holding NV (ASML): Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research
