ASML (ASML – Free Report) closed the latest trading day at $693.08, indicating a -0.44% change from the previous session’s end. This change lagged the S&P 500’s daily loss of 0.43%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.9%.
Shares of the equipment supplier to semiconductor makers have depreciated by 2.15% over the course of the past month, underperforming the Computer and Technology sector’s gain of 2.86% and the S&P 500’s loss of 1.98%.
The upcoming earnings release of ASML will be of great interest to investors. It is anticipated that the company will report an EPS of $7.19, marking a 28.39% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $9.76 billion, reflecting a 25.3% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.57 per share and a revenue of $30.49 billion, indicating changes of -4.46% and +2.29%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for ASML. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.55% decrease. Right now, ASML possesses a Zacks Rank of #4 (Sell).
Digging into valuation, ASML currently has a Forward P/E ratio of 33.85. For comparison, its industry has an average Forward P/E of 33.41, which means ASML is trading at a premium to the group.
We can additionally observe that ASML currently boasts a PEG ratio of 2.65. 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. As of the close of trade yesterday, the Semiconductor Equipment – Wafer Fabrication industry held an average PEG ratio of 3.31.
The Semiconductor Equipment – Wafer Fabrication industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 209, placing it within the bottom 17% of over 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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