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

ASML (ASML) ended the recent trading session at $732.25, demonstrating a -1.87% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.29%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.5%.The equipment supplier to semiconductor makers's shares have seen an increase of 4.24% over the last month, surpassing the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 2.52%.Market participants will be closely following the financial results of ASML in its upcoming release. The company plans to announce its earnings on January 29, 2025. In that report, analysts expect ASML to post earnings of $7.17 per share. This would mark year-over-year growth of 28.04%. Meanwhile, the latest consensus estimate predicts the revenue to be $9.76 billion, indicating a 25.3% increase compared to the same quarter of the previous year.Investors should also note any recent changes to analyst estimates for ASML. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Currently, ASML is carrying a Zacks Rank of #4 (Sell).Digging into valuation, ASML currently has a Forward P/E ratio of 29.66. For comparison, its industry has an average Forward P/E of 28.01, which means ASML is trading at a premium to the group.One should further note that ASML currently holds a PEG ratio of 2.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 2.75.The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 13% of all 250+ industries.The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ASML Holding N.V. (ASML): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks