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ASML (ASML) Laps the Stock Market: Here's Why

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ASML (ASML - Free Report) ended the recent trading session at $951.41, demonstrating a +1.27% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, added 0.9%.

The equipment supplier to semiconductor makers's stock has climbed by 8.01% in the past month, exceeding the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 3.85%.

The investment community will be paying close attention to the earnings performance of ASML in its upcoming release. It is anticipated that the company will report an EPS of $2.85, marking a 46.33% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.73 billion, down 20.88% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.43 per share and a revenue of $30.39 billion, indicating changes of -5.11% and +1.96%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ASML. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% downward. ASML presently features a Zacks Rank of #3 (Hold).

With respect to valuation, ASML is currently being traded at a Forward P/E ratio of 46. This indicates a premium in contrast to its industry's Forward P/E of 28.55.

We can also see that ASML currently has a PEG ratio of 2.27. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 2.78 based on yesterday's closing prices.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 18, positioning it in the top 8% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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