ASML (ASML) Exceeds Market Returns: Some Facts to Consider

Core Viewpoint - ASML is expected to show strong earnings growth in its upcoming report, with significant increases in both EPS and revenue compared to the previous year [2][3]. Company Performance - ASML's stock closed at $718.06, reflecting a 0.93% increase from the previous day, outperforming the S&P 500's gain of 0.05% [1]. - Over the past month, ASML shares have risen by 6.01%, surpassing the Computer and Technology sector's gain of 4.59% and the S&P 500's gain of 5.75% [1]. Earnings Estimates - The upcoming earnings report is anticipated to show an EPS of $7.20, representing a 28.57% increase year-over-year [2]. - Revenue is projected to be $9.76 billion, indicating a growth of 25.3% compared to the same quarter last year [2]. Annual Projections - For the annual period, earnings are estimated at $20.68 per share, with revenue expected to reach $30.49 billion, reflecting a decrease of 3.95% in earnings and an increase of 2.29% in revenue from the previous year [3]. Analyst Estimates - Changes in analyst estimates for ASML are crucial as they often indicate short-term business trends, with positive revisions seen as favorable for the company's outlook [3][4]. Valuation Metrics - ASML has a Forward P/E ratio of 34.4, which is slightly above the industry average of 34.2 [6]. - The company also has a PEG ratio of 2.06, compared to the Semiconductor Equipment - Wafer Fabrication industry's average PEG ratio of 3.54 [7]. Industry Context - The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 80, placing it in the top 32% of over 250 industries [8].