Back to top

Image: Bigstock

ASML (ASML) Surpasses Market Returns: Some Facts Worth Knowing

Read MoreHide Full Article

In the latest close session, ASML (ASML - Free Report) was up +1.87% at $1,711.32. The stock outperformed the S&P 500, which registered a daily gain of 1.49%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 2.26%.

The equipment supplier to semiconductor makers's stock has dropped by 4.75% in the past month, falling short of the Computer and Technology sector's gain of 2.97% and the S&P 500's gain of 0.1%.

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 October 14, 2026. In that report, analysts expect ASML to post earnings of $12.54 per share. This would mark year-over-year growth of 95.63%. In the meantime, our current consensus estimate forecasts the revenue to be $13.18 billion, indicating a 49.99% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $44.11 per share and a revenue of $50.26 billion, signifying shifts of +57.82% and +35.95%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ASML. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 a 1.67% decrease. 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 38.09 right now. This represents a premium compared to its industry average Forward P/E of 30.75.

We can also see that ASML currently has a PEG ratio of 0.85. 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. ASML's industry had an average PEG ratio of 0.85 as of yesterday's close.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 12, this industry ranks in the top 5% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Published in