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

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ASML (ASML - Free Report) closed at $781.51 in the latest trading session, marking a +1.17% move from the prior day. This move outpaced the S&P 500's daily gain of 0.13%.

Prior to today's trading, shares of the equipment supplier to semiconductor makers had gained 7.14% over the past month. This has outpaced the Computer and Technology sector's gain of 1.94% and the S&P 500's gain of 1.82% in that time.

Investors will be hoping for strength from ASML as it approaches its next earnings release. On that day, ASML is projected to report earnings of $4.67 per share, which would represent year-over-year growth of 57.77%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.04 per share and revenue of $22.27 billion. These totals would mark changes of +65.53% and +38.75%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 4.68% higher within the past month. ASML is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, ASML is currently trading at a Forward P/E ratio of 48.15. This valuation marks a premium compared to its industry's average Forward P/E of 18.97.

Investors should also note that ASML has a PEG ratio of 1.44 right now. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.08 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 217, which puts it in the bottom 15% 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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