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Why ASML (ASML) Outpaced the Stock Market Today

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The latest trading session saw ASML (ASML - Free Report) ending at $784.97, denoting a +1.92% adjustment from its last day's close. This change outpaced the S&P 500's 0.55% gain on the day. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.63%.

Coming into today, shares of the equipment supplier to semiconductor makers had gained 2.67% in the past month. In that same time, the Computer and Technology sector gained 11.3%, while the S&P 500 gained 6.29%.

Analysts and investors alike will be keeping a close eye on the performance of ASML in its upcoming earnings disclosure. The company's earnings report is set to go public on July 16, 2025. In that report, analysts expect ASML to post earnings of $5.80 per share. This would mark year-over-year growth of 34.26%. At the same time, our most recent consensus estimate is projecting a revenue of $8.46 billion, reflecting a 25.87% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $27.16 per share and a revenue of $37.13 billion, demonstrating changes of +30.45% and +21.54%, respectively, from the preceding year.

Any recent changes to analyst estimates for ASML should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.25% lower. Currently, ASML is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ASML has a Forward P/E ratio of 28.36 right now. This expresses a premium compared to the average Forward P/E of 26.38 of its industry.

It's also important to note that ASML currently trades at a PEG ratio of 1.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Semiconductor Equipment - Wafer Fabrication industry was having an average PEG ratio of 1.21.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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