ASML stock is the IBD Stock Of The Day as the semiconductor equipment leader returns to the buy zone of its recent breakout.
On the stock market today, ASML stock rose 2.2% to close at 1,071.41.
On June 12, ASML stock broke out of a 13-week consolidation pattern at a buy point of 1,056.34, according to IBD MarketSurge charts. It reached a record high of 1,077.22 that day before pulling back.
ASML stock fell out of the 5% buy zone, but, in a show of strength, stayed out of the 7%-to-8% stop-loss sell zone. It climbed back into the buy zone on Wednesday. The buy zone extends to 1,109.16.
Netherlands-based ASML was previously the IBD Stock Of The Day on June 5, shortly before its breakout.
Q2 Earnings Report Coming Soon
The next catalyst for ASML stock is likely the company's second-quarter earnings report, set for July 17.
Analysts polled by FactSet expect the Dutch chip-gear firm to earn the equivalent of $3.99 a share on sales of $6.5 billion in Q2. In the year-earlier period, ASML earned $5.52 a share on sales of $7.72 billion. ASML reports financial results in euros.
ASML makes advanced lithography systems for etching tiny circuits onto semiconductors. It is the world's only manufacturer of extreme ultraviolet (EUV) lithography equipment.
ASML Stock On Two IBD Lists
On Wednesday, Bernstein analyst Sara Russo reiterated her outperform rating on ASML stock with a price target of 1,052.
Russo said she is confident that ASML will reach the high end of its bookings goal for 2025.
"ASML has been clear since late 2023 that 2024 would be a transition year," Russo said in a client note. "It's looking like first-half 2024 is shaping up to be as expected and reflects the softer bookings of last year. But early signs of bookings stabilization (with both memory and non-EUV bookings strengthening) could signal a better outlook for second-half 2024 and underpin the strong growth expected for 2025."
Further, ASML stock is on two IBD lists: Leaderboard and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
