ASML (ASML) Dips More Than Broader Markets: What You Should Know

ASML (ASML) closed the most recent trading day at $567.44, moving -1.66% from the previous trading session. This move lagged the S&P 500's daily loss of 1.08%. Meanwhile, the Dow lost 0.81%, and the Nasdaq, a tech-heavy index, added 0.22%.

Coming into today, shares of the equipment supplier to semiconductor makers had gained 10.25% in the past month. In that same time, the Computer and Technology sector gained 0.86%, while the S&P 500 gained 1.03%.

Wall Street will be looking for positivity from ASML as it approaches its next earnings report date. In that report, analysts expect ASML to post earnings of $3.53 per share. This would mark year-over-year growth of 16.12%. Meanwhile, our latest consensus estimate is calling for revenue of $5.29 billion, up 9.22% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.54 per share and revenue of $23.68 billion. These totals would mark changes of +6.95% and +7.73%, respectively, from last year.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.66% lower. ASML is currently a Zacks Rank #4 (Sell).

In terms of valuation, ASML is currently trading at a Forward P/E ratio of 32.9. For comparison, its industry has an average Forward P/E of 16.16, which means ASML is trading at a premium to the group.

Meanwhile, ASML's PEG ratio is currently 1.86. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.73 as of yesterday's close.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 9% 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.

To follow ASML in the coming trading sessions, be sure to utilize Zacks.com.

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