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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 $868.82, moving -1.25% from the previous trading session. This move lagged the S&P 500's daily gain of 0.15%.

Prior to today's trading, shares of the equipment supplier to semiconductor makers had gained 8.49% over the past month. This has outpaced the Computer and Technology sector's gain of 0.81% and the S&P 500's loss of 0.58% 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. In that report, analysts expect ASML to post earnings of $4.67 per share. This would mark 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. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. ASML currently has a Zacks Rank of #2 (Buy).

Digging into valuation, ASML currently has a Forward P/E ratio of 54.72. This valuation marks a premium compared to its industry's average Forward P/E of 20.24.

Also, we should mention that ASML has a PEG ratio of 1.65. 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 1.08 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 125, which puts it in the top 50% 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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