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Here's Why You Should Bet on Lam Research (LRCX) Stock
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Lam Research Corporation (LRCX - Free Report) is currently one of the top-performing stocks in the technology sector and a rise in share price and strong fundamentals signal its bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
The company has performed extremely well so far this year and has the potential to carry on the momentum in the near term.
Why an Attractive Pick?
Share Price Appreciation: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourses year to date. Lam returned a whopping 96.6%, which compared favorably with the S&P 500’s gain of 14.8%.
Solid Rank & VGM Score: Lam sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or #2 (Buy) offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Seven estimates for the current year moved north over the past 30 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for the current year increased 11.2%.
Positive Earnings Surprise History: Lam has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 5.3%.
Strong Growth Prospects: The company’s Zacks Consensus Estimate for fiscal 2018 earnings of $14.45 reflects year-over-year growth of 44.8%. Moreover, earnings are expected to register 1.2% growth in fiscal 2019. The stock has long-term expected earnings per share growth rate of 14.9%.
Growth Drivers: Lam Research is doing well and continues succeed in areas such as device architecture, process flow and advanced packaging technology inflections.
The company has been improving on its WFE market share significantly since 2013 and expects to make strong gains by the end of calendar year 2017.
Management said that strong demand for bit growth in server DRAM and NAND will continue, driven by cloud computing and IoT, thus creating more opportunities for Lam Research in the near future. In fact, the company expects memory semiconductor segments to grow approximately 60% to about $130 billion in 2017 at strong levels of profitability.
Lam Research continues to see increased adoption rates of 3D NAND technology, FinFETs and multi-patterning. The company has undertaken cost-reduction activities and density scaling for 3D NAND and new memory technologies.
Moreover, the company anticipates continued strong demand for leading-edge silicon in the enterprise market courtesy of the long-term move to cloud, storage and networking applications.
Long-term earnings per share growth rate for Activision, Applied Materials and Alibaba is projected to be 13.8%, 17.1% and 30.7%, respectively.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Here's Why You Should Bet on Lam Research (LRCX) Stock
Lam Research Corporation (LRCX - Free Report) is currently one of the top-performing stocks in the technology sector and a rise in share price and strong fundamentals signal its bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
The company has performed extremely well so far this year and has the potential to carry on the momentum in the near term.
Why an Attractive Pick?
Share Price Appreciation: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourses year to date. Lam returned a whopping 96.6%, which compared favorably with the S&P 500’s gain of 14.8%.
Solid Rank & VGM Score: Lam sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or #2 (Buy) offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Seven estimates for the current year moved north over the past 30 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for the current year increased 11.2%.
Positive Earnings Surprise History: Lam has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 5.3%.
Lam Research Corporation Price and EPS Surprise
Lam Research Corporation Price and EPS Surprise | Lam Research Corporation Quote
Strong Growth Prospects: The company’s Zacks Consensus Estimate for fiscal 2018 earnings of $14.45 reflects year-over-year growth of 44.8%. Moreover, earnings are expected to register 1.2% growth in fiscal 2019. The stock has long-term expected earnings per share growth rate of 14.9%.
Growth Drivers: Lam Research is doing well and continues succeed in areas such as device architecture, process flow and advanced packaging technology inflections.
The company has been improving on its WFE market share significantly since 2013 and expects to make strong gains by the end of calendar year 2017.
Management said that strong demand for bit growth in server DRAM and NAND will continue, driven by cloud computing and IoT, thus creating more opportunities for Lam Research in the near future. In fact, the company expects memory semiconductor segments to grow approximately 60% to about $130 billion in 2017 at strong levels of profitability.
Lam Research continues to see increased adoption rates of 3D NAND technology, FinFETs and multi-patterning. The company has undertaken cost-reduction activities and density scaling for 3D NAND and new memory technologies.
Moreover, the company anticipates continued strong demand for leading-edge silicon in the enterprise market courtesy of the long-term move to cloud, storage and networking applications.
Other Stocks to Consider
Other stocks worth considering in the broader technology sector include Activision Blizzard, , Applied Materials (AMAT - Free Report) and Alibaba (BABA - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings per share growth rate for Activision, Applied Materials and Alibaba is projected to be 13.8%, 17.1% and 30.7%, respectively.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>