Lam Research is another chip-equipment name to watch, outperforming competitor KLA-Tencor in 2012, up 15.8%.
Last week, Lam Research reported earnings of 34 cents per share on $584 million in revenue. Analysts expected Lam Research to earn 30 cents per share on revenue of $571.7 million.
The company is in the process of acquiring Novellus Systems (NVLS), which it announced in December. The eventual merger between Novellus and Lam should drive synergies in chip equipment making, and allow for these companies to command higher prices for their products. Morningstar analyst Andy Ng analyst wrote in a research note Lam is one of the more impressive chip equipment companies he covers, as it has been gaining market share in both etch and clean markets. Etch is the step in where circuits are formed by selectively removing material. Ng also noted that the company has been among the most profitable firms in its industry, thanks to its flexible and efficient manufacturing model. He has a fair value of $40 on Lam Research. Stifel Nicolaus analyst Patrick J. Ho noted that due to strong earnings results from Samsung, this should benefit Lam Research, as Ho estimates 20%-25% of Lam's revenue comes from Samsung. He has a buy rating and a $60 price target on shares of Lam Research.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
