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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 $682.34 in the latest trading session, marking a -0.51% move from the prior day. This move lagged the S&P 500's daily loss of 0.11%.

Coming into today, shares of the equipment supplier to semiconductor makers had gained 2.01% in the past month. In that same time, the Computer and Technology sector gained 7.15%, while the S&P 500 gained 2.23%.

Investors will be hoping for strength from ASML as it approaches its next earnings release, which is expected to be July 21, 2021. On that day, ASML is projected to report earnings of $2.89 per share, which would represent year-over-year growth of 46.7%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.33 per share and revenue of $21.85 billion, which would represent changes of +58.2% and +36.12%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.39% higher within the past month. ASML is currently a Zacks Rank #2 (Buy).

Digging into valuation, ASML currently has a Forward P/E ratio of 44.75. Its industry sports an average Forward P/E of 21.86, so we one might conclude that ASML is trading at a premium comparatively.

It is also worth noting that ASML currently has a PEG ratio of 1.5. 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 1.14 based on yesterday's closing prices.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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