ASML (ASML) closed the recent trading session at $951.41, marking a +1.27% increase from the previous day’s closing price. This performance outpaced the S&P 500, which saw a gain of 0.52% for the day. Additionally, the Dow gained 0.12%, while the Nasdaq, a tech-heavy index, added 0.9%.
Over the past month, the stock of this semiconductor equipment supplier has climbed by 8.01%, surpassing the Computer and Technology sector’s gain of 1.9% and the S&P 500’s gain of 3.85%.
Investors are eagerly awaiting ASML’s upcoming earnings release. Analysts anticipate the company to report an EPS of $2.85, reflecting a 46.33% decrease compared to the same quarter of the previous year. The latest consensus estimate suggests quarterly revenue of $5.73 billion, down 20.88% from the year-ago period.
Looking at the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.43 per share and revenue of $30.39 billion. These figures indicate changes of -5.11% and +1.96%, respectively, from the previous year.
Additionally, it is advisable for investors to keep an eye on any recent adjustments in analyst projections for ASML. These revisions offer insight into the evolving near-term business trends. Upbeat changes in estimates typically signal analysts’ positive outlook on the company’s business prospects and profitability.
Indeed, research indicates a direct correlation between estimate revisions and near-term share price momentum. Leveraging this insight, the Zacks Rank model has been established, offering an exclusive operational rating system based on these estimated changes.
Ranked from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank has demonstrated a proven, independently audited track record of outperformance. Since 1988, #1-ranked stocks have delivered an average annual return of +25%. Over the past month, the Zacks Consensus EPS estimate for ASML has experienced a slight downward shift of 0.11%. Presently, ASML holds a Zacks Rank of #3 (Hold).
In terms of valuation, ASML is currently trading at a Forward P/E ratio of 46, indicating a premium compared to its industry’s Forward P/E of 28.55.
Furthermore, ASML’s PEG ratio stands at 2.27. This metric, akin to the renowned P/E ratio, also incorporates the stock’s anticipated earnings growth rate. Semiconductor Equipment – Wafer Fabrication stocks, on average, hold a PEG ratio of 2.78 based on yesterday’s closing prices.
The Semiconductor Equipment – Wafer Fabrication industry, a part of the Computer and Technology sector, currently boasts a Zacks Industry Rank of 18, positioning it within the top 8% of all 250+ industries.
The Zacks Industry Rank ranks industries from best to worst based on the average Zacks Rank of individual companies within each sector. Our analysis indicates that industries in the top 50% outperform the bottom half by a factor of 2 to 1.