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ASML (ASML) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, ASML (ASML - Free Report) closed at $571.69, marking a +1.43% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.31%. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the equipment supplier to semiconductor makers had gained 2.3% over the past month. This has outpaced the Computer and Technology sector's loss of 3.62% and the S&P 500's loss of 1.38% in that time.

Wall Street will be looking for positivity from ASML as it approaches its next earnings report date. On that day, ASML is projected to report earnings of $3.53 per share, which would represent year-over-year growth of 16.12%. Our most recent consensus estimate is calling for quarterly revenue of $5.29 billion, up 9.22% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.54 per share and revenue of $23.68 billion. These totals would mark changes of +6.95% and +7.73%, respectively, from last year.

Any recent changes to analyst estimates for ASML should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.66% lower. ASML is currently a Zacks Rank #4 (Sell).

In terms of valuation, ASML is currently trading at a Forward P/E ratio of 32.13. This valuation marks a premium compared to its industry's average Forward P/E of 15.87.

Meanwhile, ASML's PEG ratio is currently 1.82. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 9% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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