Lam Research (LRCX) Lagging In Pre-Market Activity
Trade-Ideas LLC identified
(
) as a pre-market laggard 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 $197.0 million.
- LRCX traded 15,922 shares today in the pre-market hours as of 9:28 AM.
- LRCX is down 3% today from yesterday's close.
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More details on LRCX:
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 1.6%. LRCX has a PE ratio of 17. Currently there are 9 analysts that rate Lam Research a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Lam Research has been 2.6 million shares per day over the past 30 days. Lam Research has a market cap of $12.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.63 and a short float of 20% with 10.10 days to cover. Shares are down 5.7% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Lam Research as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.41, 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 2.47, which demonstrates the ability of the company to cover short-term liquidity needs.
- 49.08% is the gross profit margin for LAM RESEARCH CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 10.91% trails the industry average.
- LAM RESEARCH CORP's earnings per share declined by 29.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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 ($6.20 versus $3.70).
- LRCX, with its decline in revenue, slightly underperformed the industry average of 3.4%. Since the same quarter one year prior, revenues slightly dropped by 5.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Lam Research Ratings Report.
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