Asml,a good buy now?
10/12/2024 03:31pm
**ASML Holding (ASML) is a good buy at this time.** Here's why:
1. **Strong Financial Performance**: ASML has reported a net income of $1.69 billion and a total revenue of $6.69 billion, with a diluted EPS of $4.3. The company's financial performance demonstrates its ability to generate profits and cash flow.
2. **Growth Rates**: The company has shown a net income decline of -20.29% and a revenue decline of -11.29%. However, the diluted EPS has increased by 27.98%, which could be a positive sign.
3. **Analyst Sentiments**: The consensus rating for ASML is a 'Buy' with an average price target of $784.83, suggesting that analysts are optimistic about the stock's future performance.
4. **Technical Indicators**: The stock's technical indicators are neutral to positive. The RSI is at 58.28, which is neither overbought nor oversold. The stock is trading above its 5-Day, 10-Day, and 20-Day moving averages, which could indicate short-term upward momentum.
5. **Market Performance**: ASML outpaced the S&P 500's daily gain, indicating resilience and investor confidence.
6. **Upcoming Earnings Report**: The upcoming earnings report is expected to show an EPS of $5.27, showcasing a 0.76% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $7.66 billion, up 5.42% from the year-ago period.
7. **Long-term Growth Prospects**: Demand for ASML EUV and DUV equipment remains strong, with logic and memory fabs having announced new expansion projects until 2030. For 2025 our revenue forecast sits at EUR 36 billion, around the midpoint of management's guidance, and we model sales of €58 billion in 2030, compared with management's range of €4.
In conclusion, ASML's strong financial performance, positive growth rates in diluted EPS, analyst confidence, and technical indicators, along with its strategic positioning in the semiconductor equipment market, make it a good buy at this time. Investors should consider these factors along with their investment goals and risk tolerance.