ASML stock: buy or sell?
Dec 1st, 2020
ASML stock brief
- ASML skyrocketed a 2.63% after reaching all-time highs on Tuesday
- Barclays published a buy rating for ASML on Tuesday
- The price is currently higher than the upper Bollinger band, which is usually an indicator of a near-term correction
- ASML Holding N. V. develops, produces, markets, sells, and services advanced semiconductor equipment systems consisting of lithography related systems for memory and logic chipmakers.
Should I buy ASML stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $ASML stock a buy?
Currently, ASML stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $ASML in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell ASML stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies help us to avoid impulsive decisions based on our personal sentiments or the noise surrounding the market. We like very simple setups to guide us on when is a good moment to sell a stock. Be aware that these setups are not intended for shorting ASML stock
A golden rule is that you must never keep an investment that produces greater losses than those expected by the time of purchase. When to sell your stock always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell ASML stock?
Currently, ASML stock doesn't match any of our preferred sell setups, so if you own ASML shares and your operation is in profit probably is not time to sell now
In the last 30 days, 2 analyst ratings were published for ASML. General sentiment is bullish, with 2 out of 2 publishing optimistic outlooks
|Nov 13th, 2020|
|Royal Bank of Canada||Buy → Buy|
|Dec 1st, 2020|
ASML stock analysis
ASML stock started an uptrend last September, and grew an amazing 31.39%. The price action shows higher peaks and higher lows, and along the way provided some buying opportunities for those who wanted to enter. Latest low was last October, when price bounced at $355.98. In mid-November, ASML broke out above its last top ($407.51) offering a good buying opportunity that resulted in a 10.24% gain
$ASML at Highs
On Tuesday, ASML hit all-time highs (ATH) again at $451.73. Stock rallied fast in the last 2 weeks, smashing new all-time highs 5 times
Supports and resistances
Price is at highs and there are not upper resistance levels.
The current supports are:
When the price moves out of the band (above the upper line or below the lower line) it means that the stock is having a very strong momentum and therefore can reverse the trend to the average. In this case, the price is over the upper band, meaning a near-term adjustment (at least) until it is below the band
Relative strength index
Crossed up the 70 level Tuesday, with a reading of 75.14. Contrary to what many investors may think, the fact that the value is above the level of 70 does not imply a sell point, as stocks can be in the overbought zone for many, many weeks and continue to gain
ASML stock price history
ASML started trading priced at an adjusted price1 of $1.20 on Mar 1995. Since then, ASML stock surged by 37,336.67%, with an average of 1,493.47% per year. An investment of thousand dollars at that time would be valued $374,366.67 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for ASML stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are issued every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions post their price forecasts based on the stock price action and the company fundamental data. Most of these predictions follow the release of new financial information by the company, and usually. If you are a small investor you don't have to buy or sell based on these predictions.
There is just one price target available for ASML that predicts a price of $455.00.
|Brokerage firm||Price target|
|Nov 13th, 2020|
|Royal Bank of Canada||$440.00 → $455.00|
|Dec 1st, 2020|
Earnings and financials
Financial event was hosted by ASML ($ASML) last October after posting the earnings report.In comparison, the EPS for the same quarter last year was $1.66, so posted EPS means a improvement of 78.92%. Looking at sales, figures skyrocketed a 32.53% compared to $29.9B same quarter last year.
ASML ($ASML) will host the earnings call mid next January.
ASML is classified inside the Technology sector and the Semiconductor Equipment & Materials industry, which contain 22 industry peers.
ASML major competitors are:
|Company||Market cap||Rating||Bullish ratings1|
|Applied Materials ($AMAT)||$66.5B||Buy||11|
|Lam Research ($LRCX)||$65.7B||Buy||1|
|Teradyne ($TER)||$18.0B|| ||1|
|IPG Photonics ($IPGP)||$10.8B||Buy||2|
1 In the last 30 days.
To better understand ASML performance you must compare its gains with other related stocks in same sector or industry.. For ASML, the benchmark is made against Applied Materials, Lam Research, KLA-Tencor, Teradyne, Entegris and IPG Photonics.
|Applied Materials ($AMAT)||41.00%||35.20%||48.40%|
|Lam Research ($LRCX)||30.10%||33.80%||63.80%|
|IPG Photonics ($IPGP)||15.00%||28.30%||28.20%|
Important:The viewpoints given in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this paper does not know the particular circumstances of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for educative motives only
|Tuesday, December 1st, 2020|
|Day range||$444.48 - $451.73|
|Average true range||$10.21|
|50d mov avg||$390.43|
|100d mov avg||$381.14|
|200d mov avg||$341.87|
|Earnings date||January 20th, 2021|