On Friday, ASML Holding stock reached an important technical milestone, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 80, up from 66 the day before.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating measures market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history reveals that the market's biggest winners tend to have an 80 or better RS Rating as they launch their biggest climbs.
Looking For The Best Stocks To Buy And Watch? Start Here
Is ASML Holding Stock A Buy?
ASML Holding stock has been trading above its 200-day moving average for the past three months, but dipped just below its 50-day moving average. The Dutch circuit maker stock is not in a proper buy zone at the moment, amid a bear stock market. Avoid adding stocks until the market reverses trend.
The company posted negative growth for both sales and earnings last quarter. ASML Holding is expected to report its next quarterly numbers on or around Jan. 25.
ASML Holding stock holds the No. 7 rank among its peers in the Electronics-Semiconductor Equipment industry group. KLA and Advanced Energy Inds are also among the group's highest-rated stocks.
