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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 $741.30, moving -0.51% from the previous trading session. This move lagged the S&P 500's daily gain of 1.15%.

Heading into today, shares of the equipment supplier to semiconductor makers had lost 13.49% over the past month, lagging the Computer and Technology sector's loss of 6.41% and the S&P 500's loss of 4.67% in that time.

Investors will be hoping for strength from ASML as it approaches its next earnings release, which is expected to be October 20, 2021.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.08 per share and revenue of $22.27 billion. These totals would mark changes of +65.94% and +38.75%, respectively, from last year.

Any recent changes to analyst estimates for ASML should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. ASML is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, ASML currently has a Forward P/E ratio of 46.35. Its industry sports an average Forward P/E of 19.01, 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 1.39. 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. ASML's industry had an average PEG ratio of 1 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 202, putting it in the bottom 21% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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