At $211.74, Lam Research (LRCX) a Buy based on the most current comparative pricing of its shares and SEC filings. The Buy recommendation for Lam Research Corp (NASDAQ:LRCX) is the conclusion of a process of analysis that is proprietary which generated results that were above average in 5 area: an economic sector ranked above average in attractiveness, an industry group ranked above average in attractiveness, a ranking in the company's sector that is in the top quarter, ranking in its industry group that is in the top third, and a quantitative risk/reward calculation that is attractive; and produced below average outcomes in 1 areas: an analytical score that is near average. LRCX has maintained this ranking for 2 months.
As one of the 373 companies in the GICS Electronic Technology sector LRCX is a constituent of the 39 company Electronic Production Equipment GICS industry group within this sector. LRCX has a market value of $34.6 billion which is in the top quarter of its industry group Portfolio Grader's current ranking for LRCX puts it 11 among the 39 companies in this industry group, putting it in the second quartile.
Portfolio Grader currently ranks the Electronic Technology sector number 3 among the 20 sectors in its universe putting it in the top quartile of all the GICS sectors. The Electronic Production Equipment industry group is ranked 29 among the 129 industry groups within the GICS sectors, placing it above-average in terms of the Proprietary Quantitative Score scoring system.
LRCX has realized above-average scores in 4 of the 8 fundamental areas evaluated by Portfolio Grader and average or below-average grades in 4 of the areas used in the ranking of company stocks.
LRCX's operational scores provide mixed results with a ranking for sales growth that is well above the industry average but rankings for operating margin and earnings growth are below average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions and earnings surprises that are better than average, while the score for earnings momentum is much worse than average. LRCX's ranking for return on equity is strikingly better than its industry group average but its grade for cash flow is below-average. Lam Research's fundamental scores give LRCX a place in the third quartile of the industry group.
Portfolio Grader uses the Proprietary Quantitative Score to measure LRCX's shares from the perspective of risk/reward. This unique scoring methodology balances the relative value of LRCX's shares based on the recent $211.74 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Using this risk/reward calculation, the company currently scores well above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.