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ASML (ASML) Laps the Stock Market: Here's Why

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ASML (ASML - Free Report) ended the recent trading session at $1,242.19, demonstrating a +1.14% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.62%. Elsewhere, the Dow saw an upswing of 0.99%, while the tech-heavy Nasdaq appreciated by 0.65%.

Prior to today's trading, shares of the equipment supplier to semiconductor makers had gained 9.69% outpaced the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.59%.

The upcoming earnings release of ASML will be of great interest to investors. The company's earnings report is expected 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%. Meanwhile, our latest consensus estimate is calling for revenue of $11.06 billion, up 11.9% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $29.06 per share and revenue of $37.79 billion, which would represent changes of +39.58% and 0%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for ASML. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ASML currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, ASML is holding a Forward P/E ratio of 40.69. This valuation marks a premium compared to its industry average Forward P/E of 35.55.

Investors should also note that ASML has a PEG ratio of 1.83 right now. 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 1.37 as of yesterday's close.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 45% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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