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ASML (ASML) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, ASML (ASML - Free Report) closed at $756.10, marking a -0.92% move from the previous day. This change lagged the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, added 0.13%.

Coming into today, shares of the equipment supplier to semiconductor makers had lost 1.23% in the past month. In that same time, the Computer and Technology sector lost 1.8%, while the S&P 500 gained 2.36%.

ASML will be looking to display strength as it nears its next earnings release, which is expected to be January 19, 2022. The company is expected to report EPS of $4.31, up 11.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.87 billion, up 15.73% from the year-ago period.

It is also important to note the recent changes to analyst estimates for ASML. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.88% higher. ASML is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, ASML is currently trading at a Forward P/E ratio of 38.81. For comparison, its industry has an average Forward P/E of 19.83, which means ASML is trading at a premium to the group.

Also, we should mention that ASML has a PEG ratio of 1.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.2 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 52, which puts it in the top 21% 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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