Investors looking for companies with high expansion prospects frequently encounter the difficulty of finding not only businesses with sound foundations but also those with positive market movement. One technique that merges these elements uses filters for stocks showing solid expansion traits together with encouraging technical breakout formations. This combined method intends to identify companies with strong basic business indicators that are also receiving favorable notice in the market, possibly indicating the beginning of a continued upward price movement. ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) results from this type of filtering process, offering a strong case for examination.
Fundamental Strength: The Engine for Growth
The base of any high-expansion stock rests on its fundamental condition and its capacity to increase earnings and revenue. ASML's fundamental outline, as described in its fundamental analysis report, shows a company with superior operational results and a firm financial foundation. For an expansion investment plan, measurements connected to profitability, financial condition, and, most significantly, expansion are vital. ASML performs very well in these areas, which are important for maintaining long-term price growth.
- Superior Profitability: The company receives a first-class Profitability Rating of 9 out of 10. Important measurements consist of:
- A Return on Invested Capital (ROIC) of 32.62%, doing better than 97% of similar companies in its sector.
- A strong Profit Margin of 31.73%, ranking it in the top 7% of the Semiconductors & Semiconductor Equipment industry.
- Firm Financial Condition: With a Health Rating of 7 out of 10, ASML shows a sound balance sheet. This is important for expanding companies, as it offers the steadiness required to support research and manage economic declines without being heavily impacted by debt.
- A low Debt/Equity ratio of 0.17 shows little dependence on debt funding.
- An Altman-Z score of 9.63 represents a very small chance of financial trouble.
- Solid Expansion Path: ASML's Growth Rating of 7 out of 10 is fueled by notable past and forecasted growth.
- Earnings Per Share has increased by an average of 25.62% each year over recent years.
- Revenue is predicted to increase by 11.71% on average in the next few years, showing ongoing need for its sophisticated semiconductor equipment.
Technical Momentum: The Market's Vote of Confidence
While sound fundamentals are necessary, a technical breakout formation can indicate that the market is starting to acknowledge and value this strength. ASML's technical analysis report gives it a high rating of 9 out of 10, with a particular Setup Rating of 8, showing a good entry possibility. This technical power offers the second part of the filtering plan.
- Favorable Price Movements: The long-term direction for ASML is positive, and the stock is presently trading in the higher part of its 52-week range. It has done much better than the wider market, with a 12-month gain of almost 55%.
- Stabilization and Possible Breakout: The technical analysis observes that prices have been stabilizing lately, creating a foundation. A decline within this stabilization could offer a possible entry opportunity. There is a specific resistance area just above the present price; a move above this point might indicate the next phase of growth.
- High Comparative Strength: With a comparative strength figure of 92.28, ASML has performed better than 92% of all other stocks in the market over the last year, a clear indicator of high investor interest.
A Cohesive Investment Thesis
The merger of ASML's fundamental and technical pictures forms a unified story. The company's excellent profitability and solid expansion outlook offer the fundamental reason for its valuation and future price growth. This fundamental power is what draws long-term expansion investors. At the same time, the favorable technical view, described by a solid long-term direction and a helpful stabilization formation, proposes that the market is agreeing with this fundamental account. The high technical Setup Rating suggests that the stock is not just powerful but is also situated in a manner that could provide a good risk/reward configuration for new investments. This alignment is exactly what the "Strong Growth Stocks with good Technical Setup Ratings" filter is created to find.
For investors wanting to investigate other companies that match this particular plan of merging solid expansion fundamentals with favorable technical configurations, more outcomes are available using the predefined filter here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The opinions expressed are based on current data and analysis, which are subject to change. Investing in stocks involves risk, including the potential loss of principal. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
