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ASML (ASML) Stock Moves -0.2%: What You Should Know

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ASML (ASML - Free Report) closed the most recent trading day at $706.42, moving -0.2% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.35%.

Coming into today, shares of the equipment supplier to semiconductor makers had lost 0.21% in the past month. In that same time, the Computer and Technology sector gained 4.23%, while the S&P 500 gained 3.36%.

Investors will be hoping for strength from ASML as it approaches its next earnings release, which is expected to be July 21, 2021. The company is expected to report EPS of $2.89, up 46.7% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.33 per share and revenue of $21.85 billion. These totals would mark changes of +58.2% and +36.12%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ASML. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. ASML is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, ASML is currently trading at a Forward P/E ratio of 46.18. For comparison, its industry has an average Forward P/E of 20.1, which means ASML is trading at a premium to the group.

Investors should also note that ASML has a PEG ratio of 1.55 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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