5 High Growth Low Debt Stocks to Buy

1. ASML Holding N.V. (NASDAQ:ASML)

EPS Next 5 Year Ratio: 29.80%

Debt-to-Equity Ratio: 0.48

ASML Holding N.V. (NASDAQ:ASML) ranks #1 on our list of 10 High Growth Low Debt Stocks to Buy given analysts expect the company to grow its EPS by an average annual rate of 29.80% over the next 5 years. Given semiconductors are essential for many modern technologies that are growing at a fair rate, demand for ASML Holding N.V. (NASDAQ:ASML)’s leading semiconductor producing equipment is also expected to increase in the future. ASML Holding N.V. (NASDAQ:ASML) also has a strong balance sheet given its debt to equity ratio of 0.48.

Baron Opportunity Fund commented on ASML Holding N.V. (NASDAQ:ASML) in a Q2 2022 investor letter,

ASML Holding N.V. designs and manufactures semiconductor production equipment. It specializes in photolithography equipment, where light sources are used to photo-reactively create patterns on wafers that become printed circuits. ASML is the dominant leader across all types of lithography but, most importantly, is the only company selling equipment for extreme ultra-violet (EUV) lithography, the latest generation technology.

Indeed, because of the stalling out of Moore’s Law, advanced lithography of larger and multi-patterned silicon chips has been critical for leading-edge chip manufacturing and continued improvement in semiconductor chip performance over time. The company is well positioned to continue growing above industry rates as it rapidly adds capacity across its entire business to meet rising industry demand, especially from leading-edge customers continuing to invest to stay ahead of their competitors and drive chip performance forward.

Additionally, the introduction of high-NA EUV technology in the middle of the decade will add another leg to the growth opportunity.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a look at 25 Most Famous Companies in the World and 10 Set-It-and-Forget-It Stocks to Buy According to Financial Media.

Follow Insider Monkey on Twitter