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

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ASML (ASML - Free Report) closed at $630.43 in the latest trading session, marking a -0.61% move from the prior day. This change lagged the S&P 500's daily loss of 0.02%.

Prior to today's trading, shares of the equipment supplier to semiconductor makers had gained 16.52% over the past month. This has outpaced the Computer and Technology sector's gain of 7.32% and the S&P 500's gain of 6.61% in that time.

ASML will be looking to display strength as it nears its next earnings release, which is expected to be April 21, 2021. In that report, analysts expect ASML to post earnings of $3.08 per share. This would mark year-over-year growth of 199.03%. Our most recent consensus estimate is calling for quarterly revenue of $4.84 billion, up 79.88% from the year-ago period.

ASML's full-year Zacks Consensus Estimates are calling for earnings of $12.46 per share and revenue of $19.74 billion. These results would represent year-over-year changes of +28.59% and +22.96%, respectively.

Investors might also notice recent changes to analyst estimates for ASML. Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.85% lower. ASML is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, ASML is currently trading at a Forward P/E ratio of 50.91. This valuation marks a premium compared to its industry's average Forward P/E of 24.96.

Meanwhile, ASML's PEG ratio is currently 2.97. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.68 as of yesterday's close.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.


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