ASML (ASML) closed at $1,395.00 in the latest trading session, marking a +2.57% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 0.91%.
The stock of equipment supplier to semiconductor makers has risen by 27.65% in the past month, leading the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 0.71%.
The investment community will be closely monitoring the performance of ASML in its forthcoming earnings report. The company is scheduled to release its earnings on January 28, 2026. In that report, analysts expect ASML to post earnings of $8.84 per share. This would mark year-over-year growth of 21.1%. Alongside, our most recent consensus estimate is anticipating revenue of $11.06 billion, indicating a 11.9% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $29.16 per share and revenue of $38.02 billion, indicating changes of +40.06% and 0%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for ASML. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.72% higher within the past month. Right now, ASML possesses a Zacks Rank of #2 (Buy).
Investors should also note ASML's current valuation metrics, including its Forward P/E ratio of 44.29. This represents a premium compared to its industry average Forward P/E of 40.11.
We can also see that ASML currently has a PEG ratio of 1.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.48 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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ASML Holding N.V. (ASML): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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