60.6 F
New York
Monday, October 19, 2020

Lam Research Corporation (NASDAQ:LRCX) on the Path to Profitability

Must read

Barrick Gold Corporation (NYSE:GOLD) Finding Zero Support

Barrick Gold Corporation (GOLD) shares are trading at lower $27.57 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) on the Path to Ruin

Telefonaktiebolaget LM Ericsson (publ) (ERIC) shares are trading at lower $10.70 and the avg recommendation for the stock is Strong Buy, while the current...

The Unprecedented Rise of Delta Air Lines Inc. (NYSE:DAL)

Delta Air Lines Inc. (DAL) shares are trading at higher $31.47 and the avg recommendation for the stock is Moderate Buy, while the current...

Investor Confidence is Rising for Cinedigm Corp. (NASDAQ:CIDM)

Cinedigm Corp. (CIDM) shares are trading at higher $0.60 and the avg recommendation for the stock is Moderate Buy. To add more color to...

Lam Research Corporation (LRCX) shares are trading at higher $374.23 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $390.91.

To add more color to this target, the company’s high over the last year is $387.70 and the low is $181.38. Over the last 52 weeks, LRCX is up 54.61% while the S&P 500 is up 16.41%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, LRCX reported a profit of $1.28 billion. Lam Research Corporation also saw revenues increase to $2.79 billion. In addition, LRCX has free cash flow of $1.92 billion as of 06-2020. The company’s EBITDA came in at $828.13 million which compares well with its peers.

LRCX booked profit margins of 22.40%, its Return on Equity (ROE) is 47.30%, and its Return on Assets is 17.40%. All told, it is clear that, LRCX needs to be on your watchlist.

Find out when LRCX reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. LRCX has a short ratio of 2.59 and outstanding shares of 145.29M.

Company Outlook

LRCX has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.31 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 15.12. Lam Research Corporation LRCX also noted assets of $14.56 billion at the end of the last quarter. Investors should also keep an eye on sector updates as LRCX has historically followed its peers on positive news.

All told, Lam Research Corporation LRCX has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LRCX represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Lam Research Corporation LRCX is now commanding a market cap of 53.21B and a float of 144.73M. LRCX is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of LRCX stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in LRCX, either long or short, and we have not been compensated for this article.

Latest article

Netflix Inc. (NASDAQ:NFLX) on the Path to Ruin

Netflix Inc. (NFLX) shares are trading at lower $530.79 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Is Now the Time to Invest in Royal Caribbean Group (NYSE:RCL)?

Royal Caribbean Group (RCL) shares are trading at lower $58.83 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Visa Inc. (NYSE:V) Stock is Soaring, Here is Why

Visa Inc. (V) shares are trading at higher $200.26 and the avg recommendation for the stock is Strong Buy, while the current analyst price...

Regions Financial Corporation (NYSE:RF) is Holding Steady

Regions Financial Corporation (RF) shares are trading at lower $12.47 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Investor Confidence is Falling for Annaly Capital Management Inc. (NYSE:NLY)

Annaly Capital Management Inc. (NLY) shares are trading at lower $7.24 and the avg recommendation for the stock is Moderate Buy, while the current...