Lam Research Corp Stock Buy Hold or Sell Recommendation
| LRCX Stock | USD 78.69 3.43 4.56% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Lam Research Corp is 'Cautious Hold'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Lam Research Corp given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Lam Research Corp, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Lam Research Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Lam and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Lam Research Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
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Execute Lam Research Buy or Sell Advice
The Lam recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Lam Research Corp. Macroaxis does not own or have any residual interests in Lam Research Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Lam Research's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Lam Research Trading Alerts and Improvement Suggestions
| 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 | |
| Over 86.0% of the company shares are owned by institutional investors | |
| Latest headline from thelincolnianonline.com: Disposition of 2186 shares by Douglas Bettinger of Lam Research at 76.74 subject to Rule 16b-3 |
Lam Research Returns Distribution Density
The distribution of Lam Research's historical returns is an attempt to chart the uncertainty of Lam Research's future price movements. The chart of the probability distribution of Lam Research daily returns describes the distribution of returns around its average expected value. We use Lam Research Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Lam Research returns is essential to provide solid investment advice for Lam Research.
| Mean Return | 0.09 | Value At Risk | -5.09 | Potential Upside | 4.45 | Standard Deviation | 2.79 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Lam Research historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Lam Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Lam Research, soars without any apparent reason? This usually happens because many institutional investors are aggressively trading Lam Research Corp back and forth among themselves.
| Shares | Northern Trust Corp | 2024-12-31 | 15.9 M | Ubs Asset Mgmt Americas Inc | 2024-12-31 | 13.6 M | Amundi | 2024-12-31 | 12.9 M | Bank Of New York Mellon Corp | 2024-12-31 | 11.8 M | Hhg Plc | 2024-12-31 | 11 M | Legal & General Group Plc | 2024-12-31 | 10.4 M | Ubs Group Ag | 2024-12-31 | 9.9 M | Charles Schwab Investment Management Inc | 2024-12-31 | 8.5 M | Grantham, Mayo, Van Otterloo & Co., Llc | 2024-12-31 | 8.1 M | Blackrock Inc | 2024-12-31 | 125.5 M | Vanguard Group Inc | 2024-12-31 | 120.8 M |
Lam Research Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | (792.6M) | (1.4B) | (962.0M) | 528.7M | 475.9M | 499.6M | |
| Change In Cash | (498.3M) | (897.2M) | 1.8B | 263.4M | 302.9M | 172.0M | |
| Free Cash Flow | 3.2B | 2.6B | 4.7B | 4.3B | 4.9B | 5.1B | |
| Depreciation | 307.2M | 333.7M | 342.4M | 359.7M | 413.7M | 434.3M | |
| Other Non Cash Items | (17.4M) | (44.8M) | 52.3M | 10.2M | 11.8M | 11.2M | |
| Capital Expenditures | 349.1M | 546.0M | 501.6M | 396.7M | 456.2M | 479.0M | |
| Net Income | 3.9B | 4.6B | 4.5B | 3.8B | 4.4B | 4.6B | |
| End Period Cash Flow | 4.7B | 3.8B | 5.6B | 5.9B | 6.7B | 7.1B | |
| Dividends Paid | 727.0M | 815.3M | 907.9M | 1.0B | 1.2B | 1.2B | |
| Investments | 464.5M | 1.2B | (534.6M) | (370.6M) | (426.2M) | (404.9M) | |
| Change Receivables | (641.8M) | (928.9M) | (1.3B) | 1.5B | 1.3B | 1.4B | |
| Net Borrowings | 1.3B | (862.1M) | (11.9M) | (23.2M) | (20.9M) | (19.8M) | |
| Change To Netincome | 172.1M | 51.3M | (43.1M) | 166.8M | 191.9M | 146.8M |
Lam Research Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lam Research or Semiconductors & Semiconductor Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lam Research's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Lam stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.19 | |
β | Beta against Dow Jones | 1.04 | |
σ | Overall volatility | 2.77 | |
Ir | Information ratio | 0.07 |
Lam Research Volatility Alert
Lam Research Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.19. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lam Research's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lam Research's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Lam Research Fundamentals Vs Peers
Comparing Lam Research's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Lam Research's direct or indirect competition across all of the common fundamentals between Lam Research and the related equities. This way, we can detect undervalued stocks with similar characteristics as Lam Research or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Lam Research's fundamental indicators could also be used in its relative valuation, which is a method of valuing Lam Research by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Lam Research to competition |
| Fundamentals | Lam Research | Peer Average |
| Return On Equity | 0.5 | -0.31 |
| Return On Asset | 0.16 | -0.14 |
| Profit Margin | 0.26 % | (1.27) % |
| Operating Margin | 0.30 % | (5.51) % |
| Current Valuation | 100.33 B | 16.62 B |
| Shares Outstanding | 1.28 B | 571.82 M |
| Shares Owned By Insiders | 0.29 % | 10.09 % |
| Shares Owned By Institutions | 85.72 % | 39.21 % |
| Number Of Shares Shorted | 29.02 M | 4.71 M |
| Price To Earning | 13.00 X | 28.72 X |
| Price To Book | 11.47 X | 9.51 X |
| Price To Sales | 6.23 X | 11.42 X |
| Revenue | 14.91 B | 9.43 B |
| Gross Profit | 7.74 B | 27.38 B |
| EBITDA | 4.91 B | 3.9 B |
| Net Income | 3.83 B | 570.98 M |
| Cash And Equivalents | 4.38 B | 2.7 B |
| Cash Per Share | 32.10 X | 5.01 X |
| Total Debt | 4.98 B | 5.32 B |
| Debt To Equity | 0.68 % | 48.70 % |
| Current Ratio | 2.69 X | 2.16 X |
| Book Value Per Share | 6.86 X | 1.93 K |
| Cash Flow From Operations | 4.65 B | 971.22 M |
| Short Ratio | 1.81 X | 4.00 X |
| Earnings Per Share | 3.29 X | 3.12 X |
| Price To Earnings To Growth | 1.29 X | 4.89 X |
| Target Price | 95.42 | |
| Number Of Employees | 18.3 K | 18.84 K |
| Beta | 1.54 | -0.15 |
| Market Capitalization | 101.01 B | 19.03 B |
| Total Asset | 18.74 B | 29.47 B |
| Retained Earnings | 24.81 B | 9.33 B |
| Working Capital | 8.54 B | 1.48 B |
Note: Disposition of 5500 shares by Sesha Varadarajan of Lam Research at 922.41 subject to Rule 16b-3 [view details]
Lam Research Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Lam . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Lam Research Buy or Sell Advice
When is the right time to buy or sell Lam Research Corp? Buying financial instruments such as Lam Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Lam Research in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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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.