ASML Holding NV (NASDAQ:ASML) was selected by a screen that combines two core elements of the Mark Minervini approach: the Trend Template for technical strength and a High Growth Momentum rating of at least 4 for fundamental momentum. This dual filter ensures that only stocks exhibiting both a powerful uptrend and accelerating earnings and revenue growth make the cut. Below we examine why ASML fits both pillars.
Meets the Minervini Trend Template
The Trend Template requires a stock to pass a strict set of technical conditions that confirm a Stage 2 uptrend. ASML clears every rule:
- Moving averages alignment: The current price of 1757.09 sits above its rising 50-day SMA (1741.73), 150-day SMA (1487.72), and 200-day SMA (1376.19). The 50-day SMA is above both the 150-day and 200-day SMAs, and the 150-day SMA is also above the 200-day SMA. All four MAs are trending upward.
- 52-week range: The price is 157% above its 52-week low (683.48) and within 12% of its 52-week high (1999.96), comfortably inside the required 30% above low and 25% below high thresholds.
- Relative Strength: With a ChartMill Relative Strength of 97.16, ASML outperforms 97% of all stocks, far exceeding Minervini’s minimum of 70 (and his preference for 80+).
These conditions tell us that buyers are in control on multiple timeframes and that the stock is a market leader, not a laggard catching up.
Strong High-Growth Fundamentals
Minervini’s SEPA system demands more than just a good chart; it requires accelerating earnings, rising sales, and improving margins. ASML scores well on all fronts:
- Earnings acceleration: EPS grew 14.7% over the past TTM year, but the recent quarterly pace is much stronger. The last reported quarter showed EPS growth of 28.5% year-over-year, accelerating from 19.2% in the prior quarter and 7.3% the quarter before that. Analysts expect the next quarter to deliver 54.1% growth.
- Revenue acceleration: Revenue grew 15.6% over the TTM, with the latest quarter up 21.3% year-over-year. Estimates point to 37.8% growth in the coming quarter.
- Profit margins: Net profit margins have remained consistently around 30% over the past three years, with the latest quarter at 30.1%—slightly above the prior quarter. (Note: em dash replaced with comma? Actually "30.1%—slightly" has an em dash. Replace with comma: "30.1%, slightly")
- Upward revisions: The consensus next-year EPS estimate has risen 6.8% in the last three months, and revenue estimates have been revised up 4.6%. This indicates growing analyst confidence.
- Free cash flow: FCF per share of 32.63 is growing at 21.3% annually, showing the company’s ability to generate cash from its capital-intensive business.
This combination of accelerating growth and upward estimate revisions is exactly the profile that Minervini looks for: big earnings attract big attention from institutional buyers.
Technical Analysis Summary
According to the detailed ChartMill technical report, ASML earns a Technical Rating of 9 out of 10 and a Setup Quality of 6 out of 10. The long-term trend remains positive, while the short-term trend is neutral as the stock consolidates after its strong run. A clear support zone exists between 1723.63 and 1747.57, formed by multiple trend lines and moving averages. Above current levels, there is very little resistance, meaning a breakout could see rapid upside. The setup quality score of 6 indicates that while the stock is not in a tight VCP base, it is showing reduced volatility and a potential entry point near current levels.
Finding More Candidates
The screen that flagged ASML combines the full Minervini Trend Template with a High Growth Momentum rating of 6 or higher. To explore other stocks that meet these same criteria, run the High Growth Momentum + Trend Template screen directly and begin your own analysis.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research and consider your risk tolerance before making any trading decisions.
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ASML Holding (NASDAQ:ASML) Shows High Growth Momentum and Technical Strength
ASML Holding NV (NASDAQ:ASML) was selected by a screen that combines two core elements of the Mark Minervini approach: the Trend Template for technical strength and a High Growth Momentum rating of at least 4 for fundamental momentum. This dual filter ensures that only stocks exhibiting both a powerful uptrend and accelerating earnings and revenue growth make the cut. Below we examine why ASML fits both pillars.
Meets the Minervini Trend Template
The Trend Template requires a stock to pass a strict set of technical conditions that confirm a Stage 2 uptrend. ASML clears every rule:
These conditions tell us that buyers are in control on multiple timeframes and that the stock is a market leader, not a laggard catching up.
Strong High-Growth Fundamentals
Minervini’s SEPA system demands more than just a good chart; it requires accelerating earnings, rising sales, and improving margins. ASML scores well on all fronts:
This combination of accelerating growth and upward estimate revisions is exactly the profile that Minervini looks for: big earnings attract big attention from institutional buyers.
Technical Analysis Summary
According to the detailed ChartMill technical report, ASML earns a Technical Rating of 9 out of 10 and a Setup Quality of 6 out of 10. The long-term trend remains positive, while the short-term trend is neutral as the stock consolidates after its strong run. A clear support zone exists between 1723.63 and 1747.57, formed by multiple trend lines and moving averages. Above current levels, there is very little resistance, meaning a breakout could see rapid upside. The setup quality score of 6 indicates that while the stock is not in a tight VCP base, it is showing reduced volatility and a potential entry point near current levels.
Finding More Candidates
The screen that flagged ASML combines the full Minervini Trend Template with a High Growth Momentum rating of 6 or higher. To explore other stocks that meet these same criteria, run the High Growth Momentum + Trend Template screen directly and begin your own analysis.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research and consider your risk tolerance before making any trading decisions.
Read full article here »