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.
Momentum Indicator for LRCX turns positive, indicating new upward trend
LRCX saw its Momentum Indicator move above the 0 level on May 05, 2023. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 82 similar instances where the indicator turned positive. In of the 82 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for LRCX just turned positive on April 27, 2023. Looking at past instances where LRCX's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
LRCX moved above its 50-day moving average on April 27, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LRCX advanced for three days, in of 314 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 295 cases where LRCX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for LRCX moved out of overbought territory on May 31, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where LRCX's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 May 15, 2023. 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.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 64, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (9.804) is normal, around the industry mean (7.053). P/E Ratio (17.094) is within average values for comparable stocks, (54.079). Projected Growth (PEG Ratio) (2.106) is also within normal values, averaging (2.571). Dividend Yield (0.011) settles around the average of (0.024) among similar stocks. P/S Ratio (4.452) is also within normal values, averaging (11.823).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 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.
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
LRCX and
Correlation & Price change
A.I.dvisor indicates that over the last year, LRCX has been closely correlated with AMAT. These tickers have moved in lockstep 94% of the time. This A.I.-generated data suggests there is a high statistical probability that if LRCX jumps, then AMAT could also see price increases.
| Ticker / NAME | Correlation To LRCX | 1D Price Change % | ||
|---|---|---|---|---|
| LRCX | 100% | -1.00% | ||
| AMAT - LRCX | 94% Closely correlated | -0.15% | ||
| KLAC - LRCX | 92% Closely correlated | +1.22% | ||
| MCHP - LRCX | 88% Closely correlated | +0.70% | ||
| ASML - LRCX | 88% Closely correlated | -0.29% | ||
| TER - LRCX | 87% Closely correlated | +0.12% | ||
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