ASML
Semiconductor manufacturing equipment maker ASML N.V. (NASDAQ: ASML) stock has added more than 6% to its share price over the past 12 months, including a year-to-date gain of more than 16%.
The Netherlands-based company is the sole manufacturer of a chipmaking technology known as extreme ultraviolet lithography, ASML is expected to benefit significantly from the current wave of development in AI and machine learning. The drive for a spot in the AI race may offset the difficulties that ASML and others face in selling their latest machines to Chinese chipmakers.
Of 34 analysts following the stock, 30 have a Buy or Strong Buy rating, and the other four have Hold ratings. At a recent price of around $637.00 a share, the implied upside based on a median price target of about $823.30 is 71.6%. At the high price target of $955.00, the upside potential reaches 86.6%.
Analysts expect the company to report revenue of $6.96 billion for the March quarter, up by 1.1% sequentially and by 78.0% year over year. Adjusted EPS are forecast at $4.56, down 7.3% sequentially but 138.7% higher year over year. For the full 2023 fiscal year, analysts are forecasting EPS of $20.57, down by almost 36% year over year, on revenue of $29.04 billion, up 28.1%.
ASML stock trades at around 31 times expected 2023 EPS, 24.8 times estimated 2024 EPS of $25.65 and 19.5 times estimated 2025 earnings of $32.63 per share. The stock’s 52-week range is $363.15 to $698.59. The company pays an annual dividend of $9.94 per share (yield of 1.49%). Total shareholder return for the past 12 months was 7.74%.
Baker Hughes
Oilfield services firm Baker Hughes Co. (NASDAQ: BKR) has not benefited from the high oil prices of the past year. The stock has lost about 21.7% of its value over the past 12 months. Rival Schlumberger has posted a 21.4% share price increase over the same period.
Whether, and how far, Baker Hughes can bounce back are unclear. Drilling in the Permian Basin has been relatively stable in recent months. That does not bode well for the company that needs to see drillers pumping more cash into new wells. How the company is doing in its efforts to broaden its product offerings could make or break investor reaction to the earnings report.
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