In the latest trading session, ASML (ASML) closed at $680.73, marking a -0.18% move from the previous day. This change lagged the S&P 500’s 0.02% gain on the day.
Prior to today’s trading, shares of the equipment supplier to semiconductor makers had gained 8.72% over the past month. This has outpaced the Computer and Technology sector’s gain of 2.08% and the S&P 500’s gain of 0.04% in that time.
Wall Street will be looking for positivity from ASML as it approaches its next earnings report date. The company is expected to report EPS of $2.89, up 46.7% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.27 per share and revenue of $21.85 billion, which would represent changes of +57.59% and +36.12%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ASML. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.64% higher. ASML is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that ASML has a Forward P/E ratio of 44.67 right now. Its industry sports an average Forward P/E of 22.81, so we one might conclude that ASML is trading at a premium comparatively.
We can also see that ASML currently has a PEG ratio of 1.5. 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. The Semiconductor Equipment – Wafer Fabrication industry currently had an average PEG ratio of 1.19 as of yesterday’s close.
The Semiconductor Equipment – Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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