In the latest close session, ASML (ASML) was down 2.09% at $1,597.87. This change lagged the S&P 500's 0.02% gain on the day. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.07%.
The stock of equipment supplier to semiconductor makers has risen by 17.87% in the past month, leading the Computer and Technology sector's gain of 9.97% and the S&P 500's gain of 5.12%.
The upcoming earnings release of ASML will be of great interest to investors. In that report, analysts expect ASML to post earnings of $8.1 per share. This would mark year-over-year growth of 78.02%. Meanwhile, our latest consensus estimate is calling for revenue of $10.37 billion, up 18.84% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $37.1 per share and revenue of $45.72 billion. These totals would mark changes of +32.74% and +23.66%, respectively, from last year.
Any recent changes to analyst estimates for ASML should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.72% increase. ASML is currently a Zacks Rank #2 (Buy).
Digging into valuation, ASML currently has a Forward P/E ratio of 43.99. This signifies a premium in comparison to the average Forward P/E of 40.58 for its industry.
Also, we should mention that ASML has a PEG ratio of 1.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor Equipment - Wafer Fabrication industry was having an average PEG ratio of 1.29.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 9, putting it in the top 4% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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ASML Holding N.V. (ASML): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).