Here's Why ASML (ASML) Fell More Than Broader Market

In the latest close session, ASML (ASML) was down 2.24% at $1,696.16. The stock's change was less than the S&P 500's daily loss of 0.25%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq depreciated by 0.52%.

Prior to today's trading, shares of the equipment supplier to semiconductor makers had gained 5.06% lagged the Computer and Technology sector's gain of 7.57% and outpaced the S&P 500's gain of 4.34%.

Investors will be eagerly watching for the performance of ASML in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $12.59, reflecting a 96.41% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $13.18 billion, up 49.99% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $44.92 per share and a revenue of $49.99 billion, signifying shifts of +60.72% and +35.22%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for ASML. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.53% upward. ASML presently features a Zacks Rank of #3 (Hold).

With respect to valuation, ASML is currently being traded at a Forward P/E ratio of 38.62. This represents a premium compared to its industry average Forward P/E of 32.13.

Investors should also note that ASML has a PEG ratio of 0.86 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 0.86.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 9, positioning it in the top 4% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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