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ASML (ASML) Dips More Than Broader Market: What You Should Know

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ASML (ASML - Free Report) closed at $1,080.85 in the latest trading session, marking a -3.74% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.07% for the day. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 1.69%.

Heading into today, shares of the equipment supplier to semiconductor makers had gained 10.1% over the past month, outpacing the Computer and Technology sector's gain of 1.6% and the S&P 500's gain of 0.94%.

Analysts and investors alike will be keeping a close eye on the performance of ASML in its upcoming earnings disclosure. In that report, analysts expect ASML to post earnings of $8.84 per share. This would mark year-over-year growth of 21.1%. Meanwhile, the latest consensus estimate predicts the revenue to be $11.06 billion, indicating a 11.9% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $29.01 per share and a revenue of $37.64 billion, representing changes of +39.34% and +23.21%, respectively, from the prior year.

Any recent changes to analyst estimates for ASML should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. ASML currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, ASML is holding a Forward P/E ratio of 38.71. This represents a premium compared to its industry average Forward P/E of 37.34.

We can also see that ASML currently has a PEG ratio of 1.74. 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. As the market closed yesterday, the Semiconductor Equipment - Wafer Fabrication industry was having an average PEG ratio of 1.41.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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