ASML and Papa John's have been highlighted as Zacks Bull and Bear of the Day

For Immediate ReleaseChicago, IL – October 28, 2025 – Zacks Equity Research shares ASML Holding ASML as the Bull of the Day and Papa John’s International PZZA as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Exxon Mobil Corp. XOM and Enterprise ProductsPartners LP EPD.Here is a synopsis of all four stocks.Bull of the Day:ASML Holding, the world’s leading manufacturer of advanced technology systems for the semiconductor industry, has been on a powerful bull run in recent months after a sharp correction between late 2024 and early 2025.As the AI boom continues and demand for advanced semiconductors accelerates, ASML stands at the center of this technological surge. The company maintains a true monopoly in producing extreme ultraviolet (EUV) lithography machines, equipment that is absolutely essential for manufacturing the world’s most advanced chips, making it one of the clearest ways to invest in the ongoing AI-driven semiconductor expansion.Recent earnings estimate upgrades have lifted ASML to a top Zacks Rank, while strong price momentum underscores renewed investor enthusiasm. In this piece, we’ll take a closer look at ASML’s earnings trends, historical valuation, and the technical setup that could fuel its next leg higher.Earnings Upgrades Lift ASML StockASML currently holds a Zacks Rank #1 (Strong Buy), reflecting a wave of upward revisions to earnings estimates in recent months. Consensus estimates have been raised by 3.8% for the current year and 2.9% for next year, signaling growing analyst confidence in the company’s growth trajectory.Longer term, ASML’s earnings are projected to grow at an impressive 20.9% annually over the next three to five years, an exceptional rate for a company of its size. The company operates within the Semiconductor Equipment – Wafer Fabrication industry, where it is effectively the sole major player, and that group currently ranks #3 out of 243 industries, placing it firmly in the top 1% of all Zacks ranked industries.Importantly, the market has responded decisively to these upgrades. Since estimates began trending higher roughly 60 days ago, ASML shares have surged nearly 40%, underscoring strong investor conviction and the renewed momentum surrounding the semiconductor capital equipment space.ASML Holding Shares Trade in Line with Historical AverageASML Holding currently trades at a forward earnings multiple of 35.5x, a premium to the broader market but consistent with its long history of commanding higher valuations. With its deep competitive moat, strong growth outlook, and leading-edge technology, ASML has long justified this premium as the sole provider of EUV lithography systems essential to advanced chip production.Over the past decade, the company’s median forward P/E has been 31.9x, meaning today’s valuation sits only modestly above its long-term average. Considering the accelerating demand from the AI boom and the global expansion of semiconductor manufacturing capacity, ASML may be better positioned than ever to sustain its growth and support these elevated multiples.ASML Stock Stages Major BreakoutOne of the most compelling bullish catalysts for ASML Holding right now is its technical setup. Following a steep 50% correction between mid-2024 and early 2025, the stock has staged an impressive rebound, yet there may still be considerable upside ahead.Over the last month, the stock has carved out a well-defined bull flag and just this Monday, broke out from the pattern. From a trading perspective, the key level to watch is $1,045, which now serves as a critical area of support.As long as the stock holds above this breakout zone, the technical outlook remains firmly bullish, and the next leg higher could carry shares to a new record high in the near-term.Should Investors Buy Shares in ASML?ASML’s combination of fundamental strength, earnings momentum, and technical leadership makes it one of the most compelling names in the semiconductor space today. The company’s unrivaled monopoly in EUV lithography technology ensures its systems remain indispensable to every major chip manufacturer, from Nvidia to TSMC, positioning it as a core beneficiary of the AI-driven buildout in advanced semiconductors.Despite its elevated valuation, ASML continues to justify its premium through consistent execution, accelerating earnings growth, and expanding margins.With its critical role in enabling the next generation of chip design and production, ASML stands at the epicenter of the AI hardware revolution. For investors seeking exposure to the long-term growth of the semiconductor industry, ASML remains a premier name to own, and one that could continue leading the market higher in the months ahead.Bear of the Day:Papa John’s International has faced a series of headwinds in recent years, from sluggish sales growth and an elevated valuation to ongoing reputational challenges tied to its former CEO. The stock has been trending lower since early 2022, reflecting the company’s struggle to reignite momentum amid rising competition and weakening brand perception.Adding to the pressure, analysts have steadily revised earnings estimates downward, signaling eroding confidence in near-term performance. While acquisition rumors have offered brief support, the company’s standalone fundamentals remain weak, making Papa John’s a name investors may want to avoid until its outlook improves.PZZA Stock Slumps on DowngradesEarnings estimates for Papa John’s have been trending steadily lower since 2022 and were cut again over the past 30 days, giving the stock a Zacks Rank #5 (Strong Sell) rating. Analysts have reduced current year earnings estimates by 1.7% and next year’s by 4.5%, reflecting continued pressure on both sales and margins.Revenue growth remains tepid as well, with sales expected to rise just 2.9% this year and 1.2% in 2026, suggesting limited momentum despite efforts to stabilize operations. Adding to the challenge, the Retail–Restaurants industry, of which Papa John’s is a part, currently ranks in the bottom 9% of all Zacks ranked industries, further weighing on investor sentiment and near-term performance potential.Papa John's International Shares Trade at a PremiumPerhaps most concerning is that, despite multiple bearish catalysts, Papa John’s International continues to trade at a premium valuation. The stock’s forward earnings multiple of 31.2x sits above both the industry average and its own 10-year median of 28x.Adding to the concern, earnings are projected to grow just 6.6% annually over the next three to five years. That modest outlook gives PZZA a PEG ratio of 4.7, an exceptionally high level that underscores how stretched the valuation appears relative to its growth potential.Should Investors Avoid PZZA Stock?With slowing growth, falling earnings estimates, and an industry ranking near the bottom of the Zacks universe, Papa John’s International faces a difficult road ahead. The company’s challenges are compounded by an elevated valuation, leaving little margin for error even if results stabilize.Until sales trends improve and earnings momentum returns, investors may be better served focusing on stronger names within the restaurant industry or the broader consumer discretionary sector. For now, PZZA remains a clear avoid.Additional content:Should Investors Buy ExxonMobil & Sell Enterprise Products Now?In the energy space, Exxon Mobil Corp. and Enterprise Products Partners LP are two giants. Over the past year, XOM has gained a marginal 0.6%, underperforming EPD’s 14% jump. Therefore, is Enterprise Products a better stock?Notably, price is not the only parameter to underline the attractiveness of any stock, although it reflects investors’ preferences in every business phase. Hence, before coming to investment conclusions, we need to analyze the fundamentals and overall business environment of both stocks.ExxonMobil’s Broader Business ExposureExxonMobil is an integrated energy giant, having exposure to upstream, downstream, chemicals and low-carbon solutions. The energy major’s exploration and production activities span across the Permian, the most prolific resource in the United States, and offshore Guyana. With huge oil and natural gas resources in these two premium regions, ExxonMobil’s production outlook seems bright.Also, from its downstream and chemicals businesses, XOM produces premium-quality products and lower-emission fuels, thereby adapting to the evolving demand.Enterprise Products, however, is not an integrated energy company like XOM. EPD primarily focuses on midstream operations, with a pipeline network spanning more than 50,000 miles that transports oil, gas, refined petroleum products, and petrochemicals. Although EPD generates stable fee-based revenues, the partnership is lagging in broader business exposure.Stronger Balance Sheet of XOMExxonMobil has a significantly lower exposure to debt capital, which is reflected in its debt-to-capitalization of 12.6%. Thus, when the business environment turns unfavorable, the integrated energy major can rely on its robust balance sheet to sail through the market uncertainty.On the contrary, Enterprise Products’ debt-to-capitalization of 52.3% reflects considerably more debt exposure than XOM, although in the midstream space, EPD’s credit rating is the highest. ExxonMobil, by comparison, operates on a much larger scale, with extensive global operations spanning six continents, underscoring its superior financial strength and flexibility.XOM vs. EPD: Which Is a Better Stock?XOM is also highly focused on returning capital to shareholders. Notably, for more than four decades, ExxonMobil has been rewarding shareholders with consecutive annual dividend hikes.On the flip side, EPD’s significant Permian dependence poses a concern. To feed its pipelines and processing plants, Enterprise Products has a considerable reliance on the Permian, the most prolific oil and gas shale play in the United States. On its second-quarter 2025 earnings call, EPD revealed that most of the core oil-producing regions in the Permian have already been used up, and the exploration and production companies are now increasingly focusing on those areas that are rich in natural gas.Thus, the composition of commodities that EPD will be transporting in the coming days will probably be weighted more toward natural gas. This will likely create pressure on EPD’s profit margin as natural gas and NGL are less profitable than oil at the wellhead, considering energy density and transport costs.Thus, considering the overall business environment of both stocks, ExxonMobil seems to be a better player in the energy space with more upside potential, and hence, investors who own the stock can hold onto it. XOM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.On the contrary, with EPD’s overall outlook remaining bleak, it would be a wiser decision to stay away from the overvalued stock, carrying a Zacks Rank #4 (Sell). The overvaluation is reflected in the fact that Enterprise Products trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.04X, above XOM’s 7.40X.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339https://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. 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These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report ASML Holding N.V. (ASML): Free Stock Analysis Report Papa John's International, Inc. (PZZA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks