ASML (ASML) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Company Performance - ASML's stock closed at $1,050.74, reflecting a -1% change from the previous day, underperforming the S&P 500 which fell by 0.25% [1] - Over the last month, ASML's shares increased by 15.08%, outperforming the Computer and Technology sector's gain of 8.85% and the S&P 500's gain of 3.59% [1] - The upcoming earnings release on July 17, 2024, is anticipated to show an EPS of $3.87, a decline of 27.93% year-over-year, with revenue expected at $6.35 billion, down 15.55% from the same quarter last year [1] Earnings Estimates - For the full year, the Zacks Consensus Estimates project earnings of $20.12 per share and revenue of $29.43 billion, reflecting changes of -6.55% and -1.25% respectively from the previous year [2] - Recent changes to analyst estimates indicate the dynamic nature of near-term business trends, with positive revisions suggesting analyst optimism about ASML's profitability [2] Valuation Metrics - ASML has a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate remaining unchanged over the past month [3] - The company is currently trading at a Forward P/E ratio of 52.75, which is higher than the industry average of 34.97, indicating a premium valuation [3] - ASML's PEG ratio stands at 2.24, compared to the Semiconductor Equipment - Wafer Fabrication industry's average PEG ratio of 3.5 [3] Industry Context - The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 194, placing it in the bottom 24% of over 250 industries [4] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [4]