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ASML (ASML) Gains As Market Dips: What You Should Know

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In the latest close session, ASML (ASML - Free Report) was up +1% at $1,590.97. The stock exceeded the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.78%.

Shares of the equipment supplier to semiconductor makers have depreciated by 16.35% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.27%, and the S&P 500's loss of 1.99%.

The investment community will be paying close attention to the earnings performance of ASML in its upcoming release. The company is slated to reveal its earnings on October 14, 2026. The company's upcoming EPS is projected at $12.59, signifying a 96.41% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.18 billion, up 49.99% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $44.97 per share and a revenue of $50.26 billion, indicating changes of +60.89% and +35.95%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for ASML. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. At present, ASML boasts a Zacks Rank of #2 (Buy).

With respect to valuation, ASML is currently being traded at a Forward P/E ratio of 35.03. Its industry sports an average Forward P/E of 28.87, so one might conclude that ASML is trading at a premium comparatively.

Also, we should mention that ASML has a PEG ratio of 0.78. 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 of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 0.78.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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