ASML Experiences a Slight Decline Amidst Market Performance

In the latest trading session, ASML (ASML) closed at $693.08, reflecting a modest decline of -0.44% compared to the previous day's closing. This dip is slightly below the broader market's performance, as the S&P 500 also saw a daily loss of 0.43%. Meanwhile, the Dow Jones Industrial Average experienced a minimal loss of 0.07%, while the tech-heavy Nasdaq fell by 0.9%.

Recent Performance of ASML Stocks

Over the past month, ASML's stock has decreased by 2.15%. This underperformance stands in contrast to the Computer and Technology sector, which gained 2.86% during the same period, and the S&P 500's loss of 1.98%.

Upcoming Earnings Announcement

Investors are closely watching ASML as it approaches its upcoming earnings release. Analysts expect the company to report an earnings per share (EPS) of $7.19, which represents an impressive 28.39% increase from the same quarter last year. Additionally, the consensus estimate for revenue stands at $9.76 billion, indicating a 25.3% increase compared to the previous year's equivalent quarter.

Fiscal Year Predictions

Looking at the entire fiscal year, the Zacks Consensus Estimates suggest an EPS of $20.57 and a revenue forecast of $30.49 billion. These figures reflect a decline of 4.46% in earnings and a slight increase of 2.29% in revenue compared to the previous year.

Analyst Estimate Changes

Recent adjustments to analyst estimates for ASML are worth noting. Such revisions are indicative of current business trends, and an increase in estimates signals analyst optimism regarding the company's future profitability and market position.

Understanding Estimate Changes

Research indicates that changes in analyst estimates closely correlate with stock performance in the near term. Investors can utilize this information through the Zacks Rank system, which considers these estimate changes to provide actionable stock ratings. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven track record, with #1 rated stocks boasting an average annual return of +25% since 1988. Currently, ASML holds a Zacks Rank of #4 (Sell), reflecting a 0.55% decrease in the consensus EPS estimate over the last 30 days.

Valuation Metrics

Regarding valuation, ASML's Forward P/E ratio is currently at 33.85. Comparatively, the industry average stands at 33.41, indicating that ASML's stock is trading at a premium within its sector. The company also has a PEG ratio of 2.65, which accounts for expected earnings growth and compares favorably to the Semiconductor Equipment - Wafer Fabrication industry, where the average PEG ratio is 3.31.

Industry Standing

The Semiconductor Equipment - Wafer Fabrication industry is part of the broader Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 209, placing it within the bottom 17% of over 250 industry groups. The Zacks Industry Rank assesses the strength of various industry groups based on the average Zacks Rank of the stocks within those sectors. Historical data shows that the top-rated industries outperform the lower-rated ones by a factor of 2 to 1.

Conclusion

As ASML approaches its earnings report and continues to navigate market conditions, investors should stay informed by following key updates and utilizing available research tools to guide their investment decisions.

ASML, Earnings, Stocks