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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 $574.53, marking a +0.32% move from the previous day. This change outpaced the S&P 500's 0.02% gain on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.22%.

Coming into today, shares of the equipment supplier to semiconductor makers had lost 14.2% in the past month. In that same time, the Computer and Technology sector lost 3.18%, while the S&P 500 lost 2.86%.

Investors will be hoping for strength from ASML as it approaches its next earnings release, which is expected to be October 18, 2023. On that day, ASML is projected to report earnings of $5.13 per share, which would represent year-over-year growth of 18.75%. Our most recent consensus estimate is calling for quarterly revenue of $7.49 billion, up 28.57% from the year-ago period.

ASML's full-year Zacks Consensus Estimates are calling for earnings of $21.69 per share and revenue of $30.5 billion. These results would represent year-over-year changes of +45.67% and +32.2%, respectively.

It is also important to note the recent changes to analyst estimates for ASML. Recent revisions tend to reflect the latest near-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.

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. Within the past 30 days, our consensus EPS projection has moved 0.27% higher. ASML is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, ASML is currently trading at a Forward P/E ratio of 26.41. This represents a premium compared to its industry's average Forward P/E of 21.66.

It is also worth noting that ASML currently has a PEG ratio of 1.09. 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. ASML's industry had an average PEG ratio of 2.78 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 19, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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