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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 $654.66 in the latest trading session, marking a -0.77% move from the prior day. This change lagged the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 4.08%.

Prior to today's trading, shares of the equipment supplier to semiconductor makers had gained 6.36% over the past month. This has lagged the Computer and Technology sector's gain of 9.46% and the S&P 500's gain of 6.51% in that time.

Investors will be hoping for strength from ASML as it approaches its next earnings release, which is expected to be April 19, 2023. On that day, ASML is projected to report earnings of $4.47 per share, which would represent year-over-year growth of 24.51%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $20.30 per share and revenue of $28.92 billion. These totals would mark changes of +36.33% and +25.34%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ASML. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.15% higher. ASML currently has a Zacks Rank of #3 (Hold).

Digging into valuation, ASML currently has a Forward P/E ratio of 32.5. Its industry sports an average Forward P/E of 18.39, so we one might conclude that ASML is trading at a premium comparatively.

Meanwhile, ASML's PEG ratio is currently 1.08. 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 2.97 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 200, which puts it in the bottom 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.

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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