ASML HOLDING NV (NASDAQ:ASML): A High-Growth Stock with Strong Fundamentals and Technical Turnaround Potential

Investors looking for high-growth opportunities often use both fundamental and technical analysis to find stocks with strong earnings potential and positive chart patterns. One method involves searching for companies with solid growth metrics, good profitability, and strong financials, qualities that indicate lasting growth, while also identifying technical patterns that may signal upcoming price moves. This combined approach helps select stocks with both strong business performance and signs of upward momentum.

ASML HOLDING NV (NASDAQ:ASML) fits well with this strategy. The company, a top player in advanced semiconductor lithography systems, has shown steady growth and profitability, and recent price movements suggest a possible technical turnaround.

Fundamental Strength: What Makes ASML a Strong Choice

ASML’s fundamentals match the requirements for strong growth investing:

• High Profitability: The company has a Return on Equity (ROE) of 43.78% and a Return on Invested Capital (ROIC) of 30.33%, both well above industry averages. Its operating margin of 34.90% further highlights its efficiency.
• Steady Growth: Over the past year, ASML’s Earnings Per Share (EPS) increased by 40.22%, while revenue grew by 26.41%. Analysts expect continued EPS growth of 18.80% per year, supporting its growth path.
• Financial Stability: Despite a lower-than-industry Current Ratio (1.41), ASML has a strong solvency profile with a Debt-to-Equity ratio of just 0.17, showing little dependence on debt.

These factors contribute to ASML’s Fundamental Rating of 7/10, with particularly high scores in Profitability (9/10) and Growth (8/10). For more details, see the full Fundamental Analysis Report.

Technical Setup: Signs of a Possible Turnaround

While ASML’s long-term and short-term trends are still negative, recent price action hints at a potential shift:

• Support Areas: The stock has found key support near $705,$715, formed by multiple trendlines across different timeframes. Holding above this level could indicate stability.
• Resistance Levels: Immediate resistance is around $785,$823, with a move above possibly confirming a bullish reversal.
• Setup Rating: Despite a weak overall technical score (0/10), ASML’s Setup Rating of 7/10 points to a consolidation pattern with lower volatility—a sign that a breakout could be coming.

The stock’s recent underperformance compared to the broader market (trailing 74% of stocks YTD) might offer a contrarian opportunity if fundamentals and technicals align. For a closer look, check the Technical Analysis Report.

Why This Pairing Works

Growth stocks with strong fundamentals are more likely to maintain upward trends, while technical breakouts provide entry points with clear risk/reward levels. ASML’s leadership in semiconductor equipment—a sector vital to AI, IoT, and advanced computing—positions it to benefit from long-term tech trends.

Finding More Opportunities

ASML is just one example of a stock that fits this screening method. Investors can discover similar opportunities by using the Strong Growth Stocks with Good Technical Setup Ratings screen, which filters for high-growth stocks with positive chart patterns.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research or consult a financial professional before making investment decisions.