ASML (ASML) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - ASML has received a Zacks Rank 2 (Buy) upgrade, indicating a positive earnings outlook that may lead to increased buying pressure and stock price appreciation [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine a stock's fair value, influencing their buying and selling decisions, which in turn affects stock prices [4]. ASML's Earnings Outlook - ASML is projected to earn $27.33 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for ASML has increased by 7.7%, reflecting a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating [9][10]. - ASML's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].