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Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Lam Research Corporation 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 $72.5 million.
- LRCX has traded 368,380 shares today.
- LRCX traded in a range 209.2% of the normal price range with a price range of $2.05.
- LRCX traded above its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock s movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on LRCX:
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers plasma etch products that remove materials from the wafer to create the features and patterns of a device. LRCX has a PE ratio of 74.7. Currently there are 12 analysts that rate Lam Research Corporation a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Lam Research Corporation has been 1.7 million shares per day over the past 30 days. Lam Research has a market cap of $8.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.33 and a short float of 4.8% with 5.88 days to cover. Shares are up 36.5% year to date as of the close of trading on Monday.
rates Lam Research Corporation as a
. 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, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 13.9%. Since the same quarter one year prior, revenues rose by 32.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although LRCX's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average. To add to this, LRCX has a quick ratio of 2.21, which demonstrates the ability of the company to cover short-term liquidity needs.
- 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 374.3% when compared to the same quarter one year prior, rising from $18.07 million to $85.71 million.
- Net operating cash flow has significantly increased by 80.93% to $174.99 million when compared to the same quarter last year. In addition, LAM RESEARCH CORP has also vastly surpassed the industry average cash flow growth rate of -5.31%.
- 48.19% 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 8.69% trails the industry average.
- You can view the full Lam Research Corporation Ratings Report.