ASML Q2 Preview: Expecting Stable Growth from an Established Moat

ASML's Q2 preview is expected to show moderate growth, but not elite growth due to its established moat. The stock has gained 6.33% since the last analysis, compared to 4.73% for the S&P 500, indicating a low-alpha profile. The author sold their stake in the stock due to this low-alpha profile.

ASML Holding N.V. (ASML) is poised to release its Q2 financial results, with analysts predicting moderate growth but not the elite growth that some investors had hoped for. The stock has seen a 6.33% gain since the last analysis, compared to a 4.73% increase for the S&P 500, indicating a low-alpha profile [1]. This profile, which reflects a stock's ability to outperform the market, has led some investors to sell their stakes in the company.

ASML's earnings per share (EPS) for the current quarter are expected to be $5.94, representing a year-over-year change of +37.5% [2]. The consensus revenue estimate for the current quarter stands at $8.55 billion, indicating a year-over-year change of +27.2% [2]. These figures suggest that ASML is experiencing strong growth, but not at the level that would be considered elite.

The company's Zacks Rank, which incorporates earnings estimate revisions and other factors, currently stands at #3 (Hold) [2]. This ranking suggests that ASML is expected to perform in line with the broader market in the near term.

Investors should also consider ASML's valuation metrics. The company's Forward P/E ratio is 28.58, which is slightly higher than the industry average of 27.54 [2]. Additionally, ASML's PEG ratio of 1.64 indicates that it is trading at a premium compared to its industry peers.

In conclusion, while ASML's Q2 preview suggests moderate growth, the company's low-alpha profile and slightly elevated valuation metrics may temper investor enthusiasm. As always, it is essential for investors to conduct their own research and consider their individual financial goals and risk tolerance before making any investment decisions.

References:
[1] https://seekingalpha.com/article/4800846-asml-q2-preview-dont-expect-elite-growth-from-an-established-moat
[2] https://finance.yahoo.com/news/investors-heavily-search-asml-holding-130005882.html