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

ASML (ASML) closed the most recent trading day at $567.09, moving +1.31% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.48%. Elsewhere, the Dow lost 1.5%, while the tech-heavy Nasdaq added 0.56%.

Prior to today's trading, shares of the equipment supplier to semiconductor makers had gained 2.29% over the past month. This has outpaced the Computer and Technology sector's loss of 2.16% and the S&P 500's loss of 0.53% in that time.

ASML will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.11, up 201.94% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.84 billion, up 79.88% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.57 per share and revenue of $19.74 billion. These totals would mark changes of +29.72% and +22.96%, respectively, from last year.

Any recent changes to analyst estimates for ASML should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.78% higher. ASML is currently a Zacks Rank #2 (Buy).

Investors should also note ASML's current valuation metrics, including its Forward P/E ratio of 44.54. This valuation marks a premium compared to its industry's average Forward P/E of 20.58.

Investors should also note that ASML has a PEG ratio of 2.6 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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