Is It Too Late to Buy ASML Stock?
Wall Street was ecstatic following the July 20 release of ASML Holding's (NASDAQ: ASML) second-quarter 2022 earnings report, and share prices of the Dutch semiconductor bellwether jumped over 5%.
ASML stock is now up 19% in July. This should come as a relief to ASML investors, as the stock endured a chaotic period for most of the year amid the broader tech sell-off. But does this mean that investors who were waiting on the sidelines for ASML to get cheaper have lost an opportunity to buy shares in a company that helps the world's semiconductor foundries produce chips that power a wide variety of applications? Let's find out.
ASML stock is trading at 41 times trailing earnings following its surge this month. The price-to-sales ratio has gone up to 12. These multiples are higher than ASML's five-year average earnings ratio of 40 and sales multiple of 10. Still, the stock is cheaper than last year when it was trading at 53 times earnings and 16 times sales.
Source Fool.com
