Trade-Ideas LLC identified

Lam Research

(

LRCX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Lam Research as such a stock due to the following factors:

  • LRCX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $242.2 million.
  • LRCX has traded 656,585 shares today.
  • LRCX is trading at 5.31 times the normal volume for the stock at this time of day.
  • LRCX is trading at a new high 5.04% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on LRCX:

TST Recommends

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing systems used in the fabrication of integrated circuits. The stock currently has a dividend yield of 1.8%. LRCX has a PE ratio of 15. Currently there are 10 analysts that rate Lam Research a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Lam Research has been 2.4 million shares per day over the past 30 days. Lam Research has a market cap of $10.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.57 and a short float of 13.9% with 5.99 days to cover. Shares are down 13.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Lam Research as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, compelling growth in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 38.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, LRCX has a quick ratio of 2.38, which demonstrates the ability of the company to cover short-term liquidity needs.
  • LAM RESEARCH CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LAM RESEARCH CORP increased its bottom line by earning $3.70 versus $3.68 in the prior year. This year, the market expects an improvement in earnings ($6.01 versus $3.70).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 104.6% when compared to the same quarter one year prior, rising from $141.08 million to $288.68 million.

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