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ASML (ASML) Stock Sinks As Market Gains: What You Should Know

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ASML (ASML - Free Report) closed the most recent trading day at $679.31, moving -1.67% from the previous trading session. This change lagged the S&P 500's daily gain of 0.52%.

Heading into today, shares of the equipment supplier to semiconductor makers had gained 2.48% over the past month, lagging the Computer and Technology sector's gain of 6.22% and outpacing the S&P 500's gain of 2.25% in that time.

Investors will be hoping for strength from ASML as it approaches its next earnings release, which is expected to be July 21, 2021. In that report, analysts expect ASML to post earnings of $3.05 per share. This would mark year-over-year growth of 54.82%.

ASML's full-year Zacks Consensus Estimates are calling for earnings of $15.33 per share and revenue of $21.85 billion. These results would represent year-over-year changes of +58.2% and +36.12%, respectively.

Investors should also note any 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.39% higher. ASML currently has a Zacks Rank of #2 (Buy).

Digging into valuation, ASML currently has a Forward P/E ratio of 45.07. This valuation marks a premium compared to its industry's average Forward P/E of 23.09.

We can also see that ASML currently has a PEG ratio of 1.51. 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 1.21 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 86, which puts it in the top 34% 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.

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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