IIn the last trading session, ASML (ASML) closed at $ 789.40, marking a movement of +1.43% from the previous day. This move topped the S&P 500 daily gain by 0.75%.
Prior to today, shares of the equipment supplier of semiconductor manufacturers had lost 12.29% in the past month, behind the IT and tech sector’s loss of 2.38% and the S&P 500’s loss of 0.05% during this period.
Wall Street will research ASML positivity as the date of its next earnings report approaches. That is expected to be October 20, 2021. On that day, ASML is expected to report earnings of $ 4.67 per share, which would represent 57.77% year-over-year growth.
For the full year, our Zacks consensus estimates project earnings of $ 15.96 per share and revenue of $ 22.27 billion, which would represent changes of + 64.71% and +38. , 75%, respectively, over the previous year.
Investors might also notice recent changes in analyst estimates for ASML. Recent revisions tend to reflect the latest short-term business trends. Thus, the positive estimate revisions reflect the optimism of analysts about the business and profitability of the company.
Our research shows that these changes in estimate are directly correlated with short-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive externally audited outperformance history, with # 1 stocks generating an average annual return of + 25% since 1988. Zacks Consensus EPS estimate has fallen 0.75% over the past month. ASML currently has a Zacks rank of # 4 (Sell).
Digging into the valuation, ASML currently has a forward P / E ratio of 48.78. Its industry has an average forward P / E of 19.46, so one could conclude that ASML is trading at a comparatively premium.
We can also see that ASML currently has a PEG ratio of 1.47. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. The Semiconductor Equipment – Wafer Manufacturing industry currently had an average PEG ratio of 1 at yesterday’s close.
The Semiconductor Equipment – Wafer Manufacturing industry belongs to the Computer and Technology sector. This group has a Zacks Industry Rank of 108, placing it in the top 43% of 250+ industries.
The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
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