ASML ASML shares rallied 8.8% in the last trading session to close at $1. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.6% loss over the past four weeks.
The optimism surrounding the stock can be attributed to the benefit that ASML is deriving from the traction in logic and DRAM, giving the company a medium- to long-term positive outlook.
This equipment supplier to semiconductor makers is expected to post quarterly earnings of $8.84 per share in its upcoming report, which represents a year-over-year change of +21.1%. Revenues are expected to be $11.06 billion, up 11.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For ASML, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ASML going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
ASML is part of the Zacks Semiconductor Equipment - Wafer Fabrication industry. Advanced Energy Industries AEIS, another stock in the same industry, closed the last trading session 6% higher at $221.99. AEIS has returned -2.5% in the past month.
For Advanced Energy, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.76. This represents a change of +35.4% from what the company reported a year ago. Advanced Energy currently has a Zacks Rank of #3 (Hold).
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ASML Holding N.V. (ASML): Free Stock Analysis Report Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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