Unlocking the Power of Semiconductor Giants: ASML’s Impressive 10-Year Run
A Decade of Growth and Dividends
ASML Holding N.V., a leading developer of advanced semiconductor equipment systems, is set to release its Q4 2024 earnings on January 29. Analysts expect the company to post an impressive EPS of $6.71, up from $5.61 in the previous year. Quarterly revenue is expected to reach $9.02 billion, a significant increase from $7.79 billion in the previous year.
A $10,000 Investment 10 Years Ago Could Have Yielded a Small Fortune
If you had invested $10,000 in ASML stock 10 years ago, you could have bought approximately 98 shares at $101.96 per share. Fast-forward to today, and those shares would be worth around $72,214, thanks to stock price appreciation alone. But that’s not all – ASML has also paid dividends during these 10 years, totaling around $3,473 per share. This brings the total value of your investment to a staggering $75,687, representing a total return of 656.87%.
Comparing ASML’s Performance to the S&P 500
In comparison, the S&P 500 total return for the same period is 228.48%. ASML’s impressive performance can be attributed to its dominance in the semiconductor industry and its ability to adapt to changing market trends.
Analysts’ Consensus: ASML Has Room for Growth
ASML has a consensus rating of “Overweight” and a price target of $880, implying a nearly 20% potential upside from the current stock price. The company’s strong growth prospects, combined with its modest dividend yield of 0.92%, make it an attractive option for growth-focused investors.
Q3 2024 Earnings: A Mixed Bag
In its Q3 2024 earnings report, ASML revealed a significant revision to its 2025 net sales guidance, citing a slower-than-expected recovery in key market segments. Despite this, the company reported total net sales of 7.5 billion euros, surpassing analyst expectations.
What’s Next for ASML?
For the fourth quarter of 2024, ASML expects total net sales to land between 8.8 billion euros and 9.2 billion euros, with a gross margin between 49% and 50%. With its historical stock price appreciation and expected upside potential, ASML stock may be an attractive option for investors seeking growth and income.
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