ASML (ASML Quick QuoteASML - Free Report) shares rallied 3.5% in the last trading session to close at $578.58. 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% loss over the past four weeks.

ASML Holding extended its rally, driven by the latest material revision made by the Cowen analyst, Krish Sankar, who upgraded the company’s shares from ‘Market Perform to Outperform’. This is primarily attributed to increased adoption of EUV lithography systems by its three largest customers. This is expected to increase the company’s earnings over the next few years.

Price and Consensus

This equipment supplier to semiconductor makers is expected to post quarterly earnings of $3.08 per share in its upcoming report, which represents a year-over-year change of +199%. Revenues are expected to be $4.84 billion, up 79.9% 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 1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate 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 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>