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ASML (ASML) Outpaces Stock Market Gains: What You Should Know

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ASML (ASML - Free Report) closed at $508.74 in the latest trading session, marking a +1.46% move from the prior day. This change outpaced the S&P 500's 0.55% gain on the day. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 1.03%.

Heading into today, shares of the equipment supplier to semiconductor makers had gained 9.53% over the past month, outpacing the Computer and Technology sector's gain of 2.96% and the S&P 500's gain of 3.13% in that time.

Wall Street will be looking for positivity from ASML as it approaches its next earnings report date. This is expected to be January 20, 2021. On that day, ASML is projected to report earnings of $2.91 per share, which would represent a year-over-year decline of 2.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.38 billion, down 2.04% from the year-ago period.

Any recent changes to analyst estimates for ASML should also be noted by investors. 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.

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 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 past month, the Zacks Consensus EPS estimate has moved 1.2% higher. ASML is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, ASML currently has a Forward P/E ratio of 44.54. Its industry sports an average Forward P/E of 21.48, so we one might conclude that ASML is trading at a premium comparatively.

Meanwhile, ASML's PEG ratio is currently 2.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ASML's industry had an average PEG ratio of 1.93 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 34, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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