In the latest trading session, ASML (ASML - Free Report) closed at $357, marking a -0.66% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.76%. Meanwhile, the Dow lost 1.45%, and the Nasdaq, a tech-heavy index, lost 1.99%.
Coming into today, shares of the equipment supplier to semiconductor makers had lost 4.12% in the past month. In that same time, the Computer and Technology sector gained 1.8%, while the S&P 500 gained 1.56%.
ASML will be looking to display strength as it nears its next earnings release. On that day, ASML is projected to report earnings of $2.58 per share, which would represent year-over-year growth of 55.42%. Our most recent consensus estimate is calling for quarterly revenue of $4.25 billion, up 28.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.61 per share and revenue of $15.32 billion. These totals would mark changes of +24.96% and +15.43%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ASML. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 remained stagnant. ASML is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, ASML is currently trading at a Forward P/E ratio of 41.72. This represents a premium compared to its industry's average Forward P/E of 14.74.
Meanwhile, ASML's PEG ratio is currently 1.83. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 0.96 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.