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

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ASML (ASML - Free Report) closed the most recent trading day at $658.57, moving +2.21% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.74%.

Coming into today, shares of the equipment supplier to semiconductor makers had gained 0.7% in the past month. In that same time, the Computer and Technology sector gained 3.03%, while the S&P 500 gained 3.21%.

In that report, analysts expect ASML to post earnings of $2.89 per share. This would mark year-over-year growth of 46.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.89 billion, up 33.51% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.17 per share and revenue of $21.84 billion, which would represent changes of +56.55% and +36.07%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for ASML. These recent revisions tend to reflect the evolving nature of short-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.

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 21.75% higher. ASML is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note ASML's current valuation metrics, including its Forward P/E ratio of 42.47. Its industry sports an average Forward P/E of 22.58, so we one might conclude that ASML is trading at a premium comparatively.

Also, we should mention that ASML has a PEG ratio of 1.42. 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. ASML's industry had an average PEG ratio of 1.42 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 7, which puts it in the top 3% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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