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ASML (ASML) Outpaces Stock Market Gains: What You Should Know

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In the latest market close, ASML (ASML - Free Report) reached $840.69, with a +0.81% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.61%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 0.33%.

The equipment supplier to semiconductor makers's shares have seen an increase of 4.22% over the last month, not keeping up with the Computer and Technology sector's gain of 8.6% and the S&P 500's gain of 5.36%.

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 is forecasted to report an EPS of $5.27, showcasing a 0.76% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $7.66 billion, up 5.42% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $20.28 per share and a revenue of $30.19 billion, demonstrating changes of -5.81% and +1.29%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for ASML. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has moved 0.52% lower. ASML presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ASML has a Forward P/E ratio of 41.13 right now. This signifies a premium in comparison to the average Forward P/E of 28.01 for its industry.

We can additionally observe that ASML currently boasts a PEG ratio of 2.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Semiconductor Equipment - Wafer Fabrication industry stood at 2.35 at the close of the market yesterday.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 107, positioning it in the top 43% 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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