Highly-ranked ASML Holding saw its stock Relative Strength (RS) Rating climb to 74, up from 70 last week. The rating bump comes amid a turnaround for the chip equipment maker, which saw it put up spectacular numbers the last two quarters. ASML stock rose Tuesday.
ASML Stock Repositioned After 2022 Woes
Last quarter, Netherlands-based ASML reported a 45% jump in earnings to a hefty $5.38 per share, on 32% higher revenue, to $7.53 billion. The prior quarter its EPS soared 180% and its sales shot up 87%. Its other key ratings reflect its strong turnaround from shrinking profits at the end of last year.
ASML makes lithography systems used by a host of semiconductor companies to make their chips. Basically, lithography is the process of printing a chip design onto a silicon wafer, which will later be cut up to make individual chips.
Among its other key ratings ASML boasts a perfect 99 Earnings Per Share Rating. ASML stock also has a 99 Composite Rating. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Additionally, it has a best possible A SMR Rating (sales + profit margins + return on equity), showing strong fundamentals. Its only yellow flag is its C+ Accumulation/Distribution Rating, which shows that slightly more big funds are buying ASML shares than selling. Counterbalancing that is the number of funds holding ASML stock, which rose from 879 in the December-ended quarter to 909 in March and 949 in June, a bullish signal.
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Shares More Than Doubled In 9 Months
ASML stock, which is on the IBD Big Cap 20 list, rose from a 363.15 low in mid-October to a 52-week high 771.98 on July 14. It's consolidated since then. It trades above its 200-day line and is quickly rising toward its 50 day. Tuesday afternoon, ASML traded at 663.56, up fractionally for the day. It's not near a potential buying area. See if the stock goes on to form a chart pattern such as a three-weeks-tight or a bounce off its 200-day or 50-day that would offer a fresh buying opportunity.
ASML stock holds the No. 3 rank among its peers in the 27-stock Electronics-Semiconductor Equipment industry group, according to IBD Stock Checkup. Axcelis Technologies, which makes implantation equipment, and photomask maker Photronics are also in the top 5 in the group.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary Relative Strength Rating identifies price action with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the last 52 weeks stacks up against all the other stocks in our database.
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