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ASML (ASML) Advances While Market Declines: Some Information for Investors

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The latest trading session saw ASML (ASML - Free Report) ending at $1,052.61, denoting a +1.08% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.09%.

Heading into today, shares of the equipment supplier to semiconductor makers had gained 14.25% over the past month, outpacing the Computer and Technology sector's gain of 8.04% and the S&P 500's gain of 4.59% in that time.

The investment community will be paying close attention to the earnings performance of ASML in its upcoming release. The company's upcoming EPS is projected at $3.87, signifying a 27.93% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $6.35 billion, down 15.55% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $20.12 per share and a revenue of $29.43 billion, demonstrating changes of -6.55% and -1.25%, respectively, from the preceding year.

Any recent changes to analyst estimates for ASML should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 moved 0.39% higher. As of now, ASML holds a Zacks Rank of #3 (Hold).

In the context of valuation, ASML is at present trading with a Forward P/E ratio of 51.76. This signifies a premium in comparison to the average Forward P/E of 33.09 for its industry.

We can also see that ASML currently has a PEG ratio of 2.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 3.14 at yesterday's closing price.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 219, positioning it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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