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

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ASML (ASML - Free Report) closed at $730.08 in the latest trading session, marking a -1.63% move from the prior day. This change lagged the S&P 500's daily loss of 1.42%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.47%.

Heading into today, shares of the equipment supplier to semiconductor makers had lost 6.32% over the past month, lagging the Computer and Technology sector's loss of 4.18% and the S&P 500's gain of 0.39% in that time.

Investors will be hoping for strength from ASML as it approaches its next earnings release, which is expected to be January 19, 2022. On that day, ASML is projected to report earnings of $4.31 per share, which would represent year-over-year growth of 11.95%. Our most recent consensus estimate is calling for quarterly revenue of $5.87 billion, up 15.73% from the year-ago period.

Investors should also note any recent changes to analyst estimates for ASML. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.32% higher within the past month. ASML is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note ASML's current valuation metrics, including its Forward P/E ratio of 37.96. This valuation marks a premium compared to its industry's average Forward P/E of 19.79.

Investors should also note that ASML has a PEG ratio of 1.09 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. ASML's industry had an average PEG ratio of 1.17 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 105, which puts it in the top 42% 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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