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ASML (ASML) Gains As Market Dips: What You Should Know

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ASML (ASML - Free Report) closed at $854.73 in the latest trading session, marking a +1.66% move from the prior day. This move outpaced the S&P 500's daily loss of 0.08%.

Heading into today, shares of the equipment supplier to semiconductor makers had gained 3.59% over the past month, outpacing the Computer and Technology sector's loss of 0.11% and the S&P 500's loss of 1.81% in that time.

ASML will be looking to display strength as it nears its next earnings release, which is expected to be October 20, 2021. On that day, ASML is projected to report earnings of $4.67 per share, which would represent year-over-year growth of 57.77%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.08 per share and revenue of $22.27 billion, which would represent changes of +65.94% and +38.75%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ASML. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 0.21% higher. ASML currently has a Zacks Rank of #3 (Hold).

Digging into valuation, ASML currently has a Forward P/E ratio of 52.3. For comparison, its industry has an average Forward P/E of 19.11, which means ASML is trading at a premium to the group.

It is also worth noting that ASML currently has a PEG ratio of 1.57. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.04 as of yesterday's close.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% 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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