New Lifetime High Reached By Lam Research (LRCX)

Trade-Ideas LLC identified Lam Research ( LRCX) as a new lifetime high 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 $212.8 million.
  • LRCX has traded 43,280 shares today.
  • LRCX is trading at a new lifetime high.

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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 1.5%. LRCX has a PE ratio of 18. Currently there are 10 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 $13.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.62 and a short float of 22.1% with 12.50 days to cover. Shares are up 6.9% year-to-date as of the close of trading on Friday.

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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 largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

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. Along with this, the net profit margin of 10.91% is above that of the industry average.
  • After a year of stock price fluctuations, the net result is that LRCX's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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'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).

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