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ASML (ASML) Flat As Market Gains: What You Should Know

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ASML (ASML - Free Report) closed the most recent trading day at $485.50, making no change from the previous trading session. This change lagged the S&P 500's 0.95% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.23%.

Heading into today, shares of the equipment supplier to semiconductor makers had lost 11.42% over the past month, lagging the Computer and Technology sector's loss of 2.82% and the S&P 500's loss of 3.49% in that time.

ASML will be looking to display strength as it nears its next earnings release, which is expected to be July 20, 2022. The company is expected to report EPS of $3.53, up 16.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.29 billion, up 9.22% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.54 per share and revenue of $23.68 billion, which would represent changes of +6.95% and +7.73%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ASML. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.66% lower within the past month. ASML is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, ASML is currently trading at a Forward P/E ratio of 27.68. This represents a premium compared to its industry's average Forward P/E of 13.62.

Investors should also note that ASML has a PEG ratio of 1.57 right now. 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. ASML's industry had an average PEG ratio of 1.41 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 227, putting it in the bottom 11% 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.

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


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