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ASML (ASML) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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ASML (ASML - Free Report) closed at $822.35 in the latest trading session, marking a -1.31% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.93%. Elsewhere, the Dow saw a downswing of 0.41%, while the tech-heavy Nasdaq depreciated by 1.53%.

The equipment supplier to semiconductor makers's shares have seen a decrease of 7.81% over the last month, not keeping up with the Computer and Technology sector's gain of 2.77% and the S&P 500's gain of 2.17%.

The investment community will be closely monitoring the performance of ASML in its forthcoming earnings report. The company is scheduled to release its earnings on October 16, 2024. The company's upcoming EPS is projected at $5.57, signifying a 6.5% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $7.66 billion, indicating a 5.42% upward movement from the same quarter last year.

ASML's full-year Zacks Consensus Estimates are calling for earnings of $20.38 per share and revenue of $30.18 billion. These results would represent year-over-year changes of -5.34% and +1.25%, respectively.

It is also important to note the recent changes to analyst estimates for ASML. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.39% increase. As of now, ASML holds a Zacks Rank of #3 (Hold).

Looking at its valuation, ASML is holding a Forward P/E ratio of 40.88. This signifies a premium in comparison to the average Forward P/E of 27.58 for its industry.

Also, we should mention that ASML has a PEG ratio of 2.05. 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. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 2.23.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 19, positioning it in the top 8% of all 250+ industries.

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

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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