Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Lam Research

(

LRCX

) as a post-market leader 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 $143.1 million.
  • LRCX is up 2.2% today from today'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 18. Currently there are 12 analysts that rate Lam Research a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Lam Research has been 1.8 million shares per day over the past 30 days. Lam Research has a market cap of $11.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.27 and a short float of 6.4% with 5.15 days to cover. Shares are down 2% year-to-date as of the close of trading on Tuesday.

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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 revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 12.6%. Since the same quarter one year prior, revenues rose by 13.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.88, which clearly demonstrates the ability to cover short-term cash needs.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • LAM RESEARCH CORP has improved earnings per share by 20.8% 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 $3.68 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($5.01 versus $3.68).
  • 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 25.5% when compared to the same quarter one year prior, rising from $164.40 million to $206.29 million.

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