Lam (LRCX, $595.24) and Applied Materials (AMAT, $133.60) get outperform rating at Bernstein
Lam Research and Applied Materials shares were rated outperform by a Bernstein analyst who initiated coverage of the semiconductor equipment companies.
Analyst Stacy Rasgon has a $700 share price target on Lam Research and $160 price target for Applied Materials. According to Rasgon, the semiconductor capital equipment companies have a “positive long-term structural stance."
“Over the last several years, the cyclical environment for semicap has become more supportive," the analyst said. "While still subject to swings, underlying semiconductor volatility has dampened as that industry has grown (and approached the $500B mark), with volatility correspondingly reduced in the semicap industry that feeds it."
Rasgon said that both Lam and Applied Materials have presence in a variety of sub-markets (as opposed to, say, KLA Corp. or ASML who maintain much more focus in their specialties). The analyst also mentioned that both the companies have grown over the years through acquisitions.
Applied Materials is more diversified, and makes equipment for display manufacturing as well as semiconductors, while Lam Research focuses primarily in etch and deposition, Rasgon noted.
LRCX in upward trend: 10-day moving average moved above 50-day moving average on December 11, 2024
The 10-day moving average for LRCX crossed bullishly above the 50-day moving average on December 11, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 48 cases where LRCX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LRCX advanced for three days, in of 302 cases, the price rose further within the following month. The odds of a continued upward trend are .
LRCX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 16, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on LRCX as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for LRCX turned negative on December 19, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at .
LRCX moved below its 50-day moving average on December 18, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LRCX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for LRCX entered a downward trend on December 02, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (15.649) is normal, around the industry mean (11.467). P/E Ratio (37.872) is within average values for comparable stocks, (57.657). Projected Growth (PEG Ratio) (2.793) is also within normal values, averaging (3.177). Dividend Yield (0.008) settles around the average of (0.021) among similar stocks. P/S Ratio (9.174) is also within normal values, averaging (54.092).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LRCX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of semiconductor processing equipment
Industry Semiconductors