Lam Research (LRCX) Strong On High Relative Volume Today
Trade-Ideas LLC identified
(
) 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 $196.9 million.
- LRCX has traded 675,583 shares today.
- LRCX is trading at 6.04 times the normal volume for the stock at this time of day.
- LRCX is trading at a new high 5.02% 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:
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 16. 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 $11.8 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 10.79 days to cover. Shares are down 7.7% 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 ($6.21 versus $3.70).
- LRCX, with its decline in revenue, slightly underperformed the industry average of 3.2%. 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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