Is Lam Research Stock a Good Investment?
Lam Research Investment Advice | LRCX |
- Examine Lam Research's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Lam Research's leadership team and their track record. Good management can help Lam Research navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Lam Research's business and its evolving consumer preferences.
- Compare Lam Research's performance and market position to its competitors. Analyze how Lam Research is positioned in terms of product offerings, innovation, and market share.
- Check if Lam Research pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Lam Research's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Lam Research Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Lam Research Corp is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Lam Research Stock
Researching Lam Research's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company has Price/Earnings To Growth (PEG) ratio of 1.4. Lam Research Corp last dividend was issued on the 11th of December 2024. The entity had 10:1 split on the 3rd of October 2024.
To determine if Lam Research is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Lam Research's research are outlined below:
| Lam Research Corp generated a negative expected return over the last 90 days | |
| Lam Research Corp is unlikely to experience financial distress in the next 2 years | |
| Lam Research Corp has a strong financial position based on the latest SEC filings | |
| On 1st of October 2024 Lam Research paid $ 2.3 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Disposition of 400 shares by Timothy Archer of Lam Research at 1070.89 subject to Rule 16b-3 |
Lam Research Quarterly Liabilities And Stockholders Equity |
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Lam Research uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Lam Research Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Lam Research's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 17th of April 2024 Upcoming Quarterly Report | View | |
| 24th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 24th of July 2024 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 30th of June 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Lam Research's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Lam Research's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2003-10-15 | 2003-09-30 | 0.03 | 0.04 | 0.01 | 33 | ||
2002-07-23 | 2002-06-30 | -0.07 | -0.06 | 0.01 | 14 | ||
1998-01-21 | 1997-12-31 | 0.04 | 0.03 | -0.01 | 25 | ||
1997-07-29 | 1997-06-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2004-01-21 | 2003-12-31 | 0.05 | 0.07 | 0.02 | 40 | ||
1999-10-21 | 1999-09-30 | 0.17 | 0.19 | 0.02 | 11 | ||
2012-01-25 | 2011-12-31 | 0.3 | 0.34 | 0.04 | 13 | ||
2009-01-28 | 2008-12-31 | -0.05 | -0.09 | -0.04 | 80 |
Know Lam Research's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Lam Research is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Lam Research Corp backward and forwards among themselves. Lam Research's institutional investor refers to the entity that pools money to purchase Lam Research's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Hhg Plc | 2024-06-30 | 1.8 M | Norges Bank | 2024-06-30 | 1.8 M | Northern Trust Corp | 2024-06-30 | 1.4 M | Bank Of America Corp | 2024-06-30 | 1.3 M | Nuveen Asset Management, Llc | 2024-06-30 | 1.3 M | Amundi | 2024-06-30 | 1.3 M | Massachusetts Financial Services Company | 2024-06-30 | 1.3 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.2 M | Legal & General Group Plc | 2024-06-30 | 1.2 M | Blackrock Inc | 2024-06-30 | 12.9 M | Vanguard Group Inc | 2024-06-30 | 12.1 M |
Lam Research's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 93.53 B.Market Cap |
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Lam Research's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.23 | 0.24 | |
| Return On Capital Employed | 0.30 | 0.31 | |
| Return On Assets | 0.20 | 0.21 | |
| Return On Equity | 0.45 | 0.47 |
Determining Lam Research's profitability involves analyzing its financial statements and using various financial metrics to determine if Lam Research is a good buy. For example, gross profit margin measures Lam Research's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Lam Research's profitability and make more informed investment decisions.
Lam Research's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Lam Research's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Lam Research Corp. Check Lam Research's Beneish M Score to see the likelihood of Lam Research's management manipulating its earnings.
Evaluate Lam Research's management efficiency
Lam Research Corp has return on total asset (ROA) of 0.1496 % which means that it generated a profit of $0.1496 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.4912 %, meaning that it created $0.4912 on every $100 dollars invested by stockholders. Lam Research's management efficiency ratios could be used to measure how well Lam Research manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to rise to 0.24 in 2024. Return On Capital Employed is likely to rise to 0.31 in 2024. At this time, Lam Research's Return On Assets are fairly stable compared to the past year. Asset Turnover is likely to rise to 0.95 in 2024, whereas Net Tangible Assets are likely to drop slightly above 4.1 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 6.50 | 6.82 | |
| Tangible Book Value Per Share | 5.16 | 5.41 | |
| Enterprise Value Over EBITDA | 28.24 | 29.65 | |
| Price Book Value Ratio | 16.32 | 17.14 | |
| Enterprise Value Multiple | 28.24 | 29.65 | |
| Price Fair Value | 16.32 | 17.14 | |
| Enterprise Value | 959.3 M | 911.3 M |
Lam Research showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Dividend Yield 0.0127 | Forward Dividend Yield 0.0127 | Forward Dividend Rate 0.92 | Beta 1.486 |
Basic technical analysis of Lam Stock
As of the 28th of November, Lam Research secures the Mean Deviation of 1.99, risk adjusted performance of (0.03), and Standard Deviation of 2.78. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lam Research Corp, as well as the relationship between them.Lam Research's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Lam Research insiders, such as employees or executives, is commonly permitted as long as it does not rely on Lam Research's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Lam Research insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Sesha Varadarajan over six months ago Disposition of 5500 shares by Sesha Varadarajan of Lam Research at 922.41 subject to Rule 16b-3 | ||
Leslie Varon over a year ago Acquisition by Leslie Varon of 369 shares of Lam Research subject to Rule 16b-3 | ||
Leslie Varon over a year ago Acquisition by Leslie Varon of 510 shares of Lam Research subject to Rule 16b-3 | ||
Sesha Varadarajan over a year ago Acquisition by Sesha Varadarajan of 1961 shares of Lam Research subject to Rule 16b-3 |
Lam Research's Outstanding Corporate Bonds
Lam Research issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Lam Research Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Lam bonds can be classified according to their maturity, which is the date when Lam Research Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| US512807AX67 Corp BondUS512807AX67 | View | |
| LAM RESEARCH PORATION Corp BondUS512807AV02 | View | |
| LAM RESEARCH PORATION Corp BondUS512807AW84 | View | |
| LAM RESEARCH PORATION Corp BondUS512807AT55 | View | |
| LAM RESEARCH PORATION Corp BondUS512807AU29 | View | |
| LAM RESEARCH PORATION Corp BondUS512807AS72 | View | |
| LAM RESH P Corp BondUS512807AN85 | View |
Understand Lam Research's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Lam Research's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.10) | |||
| Mean Deviation | 1.99 | |||
| Coefficient Of Variation | (2,027) | |||
| Standard Deviation | 2.78 | |||
| Variance | 7.72 | |||
| Information Ratio | (0.1) | |||
| Jensen Alpha | (0.30) | |||
| Total Risk Alpha | (0.58) | |||
| Treynor Ratio | (0.11) | |||
| Maximum Drawdown | 16.34 | |||
| Value At Risk | (2.92) | |||
| Potential Upside | 4.4 | |||
| Skewness | (0.77) | |||
| Kurtosis | 2.88 |
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.10) | |||
| Mean Deviation | 1.99 | |||
| Coefficient Of Variation | (2,027) | |||
| Standard Deviation | 2.78 | |||
| Variance | 7.72 | |||
| Information Ratio | (0.1) | |||
| Jensen Alpha | (0.30) | |||
| Total Risk Alpha | (0.58) | |||
| Treynor Ratio | (0.11) | |||
| Maximum Drawdown | 16.34 | |||
| Value At Risk | (2.92) | |||
| Potential Upside | 4.4 | |||
| Skewness | (0.77) | |||
| Kurtosis | 2.88 |
Consider Lam Research's intraday indicators
Lam Research intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Lam Research stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 263758.0 | |||
| Daily Balance Of Power | (0.46) | |||
| Rate Of Daily Change | 0.98 | |||
| Day Median Price | 71.65 | |||
| Day Typical Price | 71.62 | |||
| Price Action Indicator | (0.64) | |||
| Period Momentum Indicator | (1.12) | |||
| Relative Strength Index | 43.14 |
Lam Research Corporate Filings
F4 | 12th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 28th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 23rd of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 5th of September 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Lam Stock media impact
Far too much social signal, news, headlines, and media speculation about Lam Research that are available to investors today. That information is available publicly through Lam media outlets and privately through word of mouth or via Lam internal channels. However, regardless of the origin, that massive amount of Lam data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Lam Research news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Lam Research relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Lam Research's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Lam Research alpha.
Lam Research Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Lam Research can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Lam Research Corp Historical Investor Sentiment
Investor biases related to Lam Research's public news can be used to forecast risks associated with an investment in Lam. The trend in average sentiment can be used to explain how an investor holding Lam can time the market purely based on public headlines and social activities around Lam Research Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Lam Research's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Lam Research and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Lam Research news discussions. The higher the estimate score, the more favorable the investor's outlook on Lam Research.
Lam Research Corporate Management
| Richard Gottscho | Executive VP of Global Products | Profile | |
| Christina Correia | VP Officer | Profile | |
| Steve Fine | Corporate Officer | Profile | |
| Ram Ganesh | Vice Relations | Profile | |
| Ava Harter | Senior Officer | Profile | |
| Seshasayee Varadarajan | Senior Group | Profile |
Additional Tools for Lam Stock Analysis
When running Lam Research's price analysis, check to measure Lam Research's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lam Research is operating at the current time. Most of Lam Research's value examination focuses on studying past and present price action to predict the probability of Lam Research's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lam Research's price. Additionally, you may evaluate how the addition of Lam Research to your portfolios can decrease your overall portfolio volatility.