ASML (ASML) closed at $718.06 in the latest trading session, marking a +0.93% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.05%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq increased by 0.4%.
Heading into today, shares of the equipment supplier to semiconductor makers had gained 6.01% over the past month, outpacing the Computer and Technology sector's gain of 4.59% and the S&P 500's gain of 5.75% in that time.
The investment community will be closely monitoring the performance of ASML in its forthcoming earnings report. The company is expected to report EPS of $7.20, up 28.57% from the prior-year quarter. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $20.68 per share and a revenue of $30.49 billion, signifying shifts of -3.95% and +2.29%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for ASML. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.39% lower. Right now, ASML possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ASML has a Forward P/E ratio of 34.4 right now. This represents a premium compared to its industry's average Forward P/E of 34.2.
It is also worth noting that ASML currently has a PEG ratio of 2.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 3.54.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 80, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
