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ASML (ASML) Gains As Market Dips: What You Should Know
ASML (ASML - Free Report) closed the most recent trading day at $633.69, moving +0.5% from the previous trading session. This change outpaced the S&P 500's 1.1% loss on the day. Elsewhere, the Dow lost 1.19%, while the tech-heavy Nasdaq lost 3.27%.
Coming into today, shares of the equipment supplier to semiconductor makers had lost 3.92% in the past month. In that same time, the Computer and Technology sector gained 1.45%, while the S&P 500 lost 3.02%.
Investors will be hoping for strength from ASML as it approaches its next earnings release. The company is expected to report EPS of $4.47, up 24.51% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.50 per share and revenue of $28.92 billion, which would represent changes of +30.96% and +25.34%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ASML. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% lower. ASML currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, ASML is holding a Forward P/E ratio of 32.35. Its industry sports an average Forward P/E of 19, so we one might conclude that ASML is trading at a premium comparatively.
Investors should also note that ASML has a PEG ratio of 1.07 right now. 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 3.13 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 219, which puts it in the bottom 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.