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.
The Stochastic Oscillator for LRCX moved out of overbought territory on December 06, 2024. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 68 similar instances where the indicator exited the overbought zone. In of the 68 cases the stock moved lower. This puts the odds of a downward move at .
LRCX moved below its 50-day moving average on December 10, 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 .
LRCX broke above its upper Bollinger Band on December 02, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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 Momentum Indicator moved above the 0 level on December 02, 2024. You may want to consider a long position or call options on LRCX as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for LRCX just turned positive on November 26, 2024. Looking at past instances where LRCX's MACD turned positive, the stock continued to rise in of 52 cases over the following month. 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 306 cases, the price rose further within the following month. The odds of a continued upward trend are .
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 69, 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 (9.168). P/E Ratio (37.872) is within average values for comparable stocks, (58.695). Projected Growth (PEG Ratio) (2.793) is also within normal values, averaging (3.095). 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 (45.382).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LRCX’s price grows at a higher 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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of semiconductor processing equipment
Industry Semiconductors