ASML (ASML) closed the most recent trading day at $798.09, moving -2.1% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.8% for the day. On the other hand, the Dow registered a gain of 0.94%, and the technology-centric Nasdaq increased by 0.97%.
The equipment supplier to semiconductor makers's stock has climbed by 9.21% in the past month, exceeding the Computer and Technology sector's gain of 8.5% and the S&P 500's gain of 5.12%.
Investors will be eagerly watching for the performance of ASML in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 16, 2025. On that day, ASML is projected to report earnings of $5.87 per share, which would represent year-over-year growth of 35.88%. In the meantime, our current consensus estimate forecasts the revenue to be $8.46 billion, indicating a 25.87% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.33 per share and a revenue of $37.13 billion, signifying shifts of +31.27% and +21.54%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for ASML. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.64% rise in the Zacks Consensus EPS estimate. As of now, ASML holds a Zacks Rank of #2 (Buy).
In terms of valuation, ASML is currently trading at a Forward P/E ratio of 29.83. This represents a premium compared to its industry average Forward P/E of 27.84.
We can also see that ASML currently has a PEG ratio of 1.58. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Semiconductor Equipment - Wafer Fabrication industry was having an average PEG ratio of 1.27.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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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