LRCX stock: buy or sell?

LRCX stock price: $186.91 1.76% At close on May 21st, 2019

Updated on:
May 21st, 2019

2

After sliding a dreadful -5.71% yesterday, Lam Research closed today at $186.91 and escalated a decent 1.76%.

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide.

Should I buy LRCX stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Lam Research stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Lam Research stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we gathered 11 ratings published for LRCX stock in the last month.

The general sentiment of these ratings is bullish for LRCX stock, with 7 positive ratings.
Is LRCX a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-4-25UBS GroupNeutralNeutral
2019-4-25KeyCorpOverweightOverweight
2019-4-25Deutsche BankHoldHold
2019-4-23Royal Bank of Canadan/aOutperform
2019-3-15CitigroupBuyBuy
2019-2-25Deutsche Bankn/aHold
2019-2-22Morgan StanleyOverweightEqual Weight
2019-1-29Royal Bank of CanadaSector PerformOutperform
2019-1-24Needham & Company LLCn/aBuy
2019-1-24KeyCorpn/aOverweight
2019-1-24CowenOutperformOutperform

LRCX stock analysis

Daily outlook

After sliding a dreadful -5.71% yesterday, Lam Research closed today at $186.91 and escalated a decent 1.76%.

After sliding a dreadful -5.71% yesterday, Lam Research closed today at $186.91 and escalated a decent 1.76%. Since SMA100d and SMA200d crossed up on April/11, LRCX price slid a -2.06%. LRCX marked a lower low and a lower high in the short term, defining a downward trend. Climbing above $200.00 would break this short term down trend and open possibilities for reversing this situation. Since price and SMA200d lines crossed up on January, LRCX climbed $26.69 (16.66%).

LRCX stock chart (daily)

Weekly outlook

Shares of Lam Research slipped a terrible -3.73% this week. With this, it's been 3 sliding weeks in a row, loosing $-20.87 (-10.11%). Late April LRCX climbed an exceptional 5.63% in just one week.

In a weekly time frame, Lam Research stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, LRCX might consolidate in a flat-base, waiting to break out over or down under . Since SMA20d and SMA40w crossed up early April, LRCX price climbed $7.90 per share (4.41%). Since late January when LRCX stock price broke up the SMA40w line, it gained $40.26 (27.45%).

LRCX stock chart (weekly)

LRCX stock price history

LRCX IPO was on May 4th, 1984 at $2.06 per share1. Since then, LRCX stock surged a 8,973.30%, with a yearly average of 256.40%. If you had invested right after LRCX's IPO a $1,000 in LRCX stock in 1984, it would worth $89,733.00 today.

1: Adjusted price after possible price splits or reverse-splits.

LRCX stock historical price chart

LRCX stock reached 52-week highs on April 25th at $209.50, and all-time highs 2018-03-13 with a price of 229.01.

LRCX stock price target is $202.90

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' LRCX stock price predictions in the hope that they will be met as they may be wrong and not met. We have 10 price forecasts for Lam Research stock published in the last 30 days:
LRCX stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-4-25UBS GroupRaises Target$170.00$205.0020.6%
2019-4-25KeyCorpReiterates$223.00$236.005.8%
2019-4-25Deutsche BankRaises Target$180.00$195.008.3%
2019-4-23Royal Bank of CanadaRaises Target$3.25$220.006669.2%
2019-3-15CitigroupReiterates$177.00$215.0021.5%
2019-2-25Deutsche BankRaises Targetn/a$180.00-
2019-1-29Royal Bank of CanadaUpgradesn/a$190.00-
2019-1-24Needham & Company LLCReiteratesn/a$180.00-
2019-1-24KeyCorpReiterates$231.00$223.00-3.5%
2019-1-24CowenReiterates$210.00$185.00-11.9%
(in average)$170.60$202.9019.0%
Moving in a range from $236.00 and $180.00, the price prediction for LRCX stock is $202.90. In average, analysts' outlook on LRCX price forecast is positive, upgrading the forecast by a 19.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

In the last 36 days, when Lam Research posted its last earnings report, it slightly fell a lame -3.06%. Unfortunately, reported EPS is not yet available in our database.
LRCX earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a2.82n/a
2017-Q32017-10-173.283.465.5%
2017-Q42018-01-243.684.3417.9%
2018-Q12018-04-174.364.799.9%
2018-Q22018-07-264.985.316.6%
2018-Q32018-10-163.213.364.7%
2018-Q42019-01-233.673.875.4%
2019-Q12019-04-153.39n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Lam Research annual turnover skyrocketed a super good 38.23% to $11,077.00 million dollars from $8,013.62 marked in 2017. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) remained constant a 0.31% to 21.49%.

To have an updated picture of the financial situation of Lam Research, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Lam Research TTM sales up to March 2019 were $10,418.34 and income was $2,670.76 million USD. If we compare this TTM figures with the last reported annuality, we can review Lam Research business evolution since June 2018: Annual sales up to March, compared to lastest yearly report, fell a tragic -5.95%. In contrast, profit margin (net income/revenues) appreciated at 21.49%.

LRCX annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$3,590 M-$114 M3.2%-
2014$4,600 M28.13%$632 M13.7%455.22%
2015$5,259 M14.33%$656 M12.5%3.68%
2016$5,886 M11.91%$914 M15.5%39.43%
2017$8,014 M36.15%$1,698 M21.2%85.74%
2018$11,077 M38.23%$2,381 M21.5%40.22%
TTM $10,418 M-5.95%$2,671 M25.6%12.18%

Quarterly financial results

Lam Research posted $2,439.05 million in revenues for 2019-Q1, a -3.31% less compared to previous quarter. Reported quarter earnings marked $547.39 million with a profit margin of 22.44%. Profit margin stayed constant a -0.11% compared to previous quarter when profit margin was 22.55%. When comparing sales to same quarter last year, Lam Research sales marked a bloodcurdling loss and plunged a -15.67%.
LRCX quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$2,350 M-$526 M22.4%-
2017-Q3$2,480 M5.53%$591 M23.8%12.21%
2017-Q4$2,581 M4.06%$-10 M-0.4%-101.69%
2018-Q1$2,892 M12.06%$779 M26.9%-7,923.20%
2018-Q2$3,126 M8.08%$1,021 M32.7%31.12%
2018-Q3$2,331 M-25.44%$533 M22.9%-47.77%
2018-Q4$2,523 M8.24%$569 M22.5%6.65%
2019-Q1$2,439 M-3.31%$547 M22.4%-3.77%

Lam Research ownership

When you are planning to invest in a company, it's always worth to have a look its ownership structure.

Lam Research shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.45% of all shares.

Bearish positions for LRCX stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

LRCXACLSAMATASYSCVV
Market cap$28.0 B$525.7 M$38.3 B$85.9 M$23.6 M
Total shares149.9 M32.9 M949.4 M14.2 M6.6 M
Float shares149.3 M30.6 M939.9 M12.0 M5.2 M
  - Institutional holdings (%)91.9%85.8%81.5%58.2%17.4%
  - Insider holdings (%)0.4%1.7%0.3%1.8%19.0%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

LRCX summary

Tuesday, May 21st, 2019
Open$186.61
Close$186.91
Day range$185.49 - $188.61
Previous close$183.67
Session gain1.76%
Average true range$6.83
50d mov avg$190.73
100d mov avg$175.79
200d mov avg$163.35
Daily patternlb06a
Weekly pattern lt06a

Lam Research performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Lam Research performance to Axcelis Technologies, Applied Materials, Amtech Systems, CVD Equipment, KLA-Tencor and Veeco Instruments:
Stock3m6m12m
LRCXLam Research4.93%31.55%-5.11%
ACLSAxcelis Technolog...-27.52%-10.84%-24.89%
AMATApplied Materials2.33%15.72%-19.43%
ASYSAmtech Systems22.81%8.45%-32.47%
CVVCVD Equipment-16.28%-20.53%-50.28%
KLACKLA-Tencor-7.12%13.55%-4.94%
VECOVeeco Instruments-1.79%45.75%-30.51%

Lam Research competitors

One check before investing in any stock is to review a list of its competitors, in this case for Lam Research. We chose 6 companies as Lam Research competitors as they are in the same industry or have similar market objectives.

Latest LRCX stock news