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Why Quality Investors May Find LAM RESEARCH CORP (NASDAQ:LRCX) Attractive.

By Mill Chart

Last update: Jan 2, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LAM RESEARCH CORP (NASDAQ:LRCX) is suited for quality investing. Investors should of course do their own research, but we spotted LAM RESEARCH CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NASDAQ:LRCX Holds Appeal for Quality Investors.

  • LAM RESEARCH CORP has demonstrated significant revenue growth over the past 5 years, with a 9.49% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • LAM RESEARCH CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 55.74% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a Debt/Free Cash Flow Ratio of 1.11, LAM RESEARCH CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • LAM RESEARCH CORP exhibits impressive Profit Quality (5-year) with a 91.71% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • With a robust 5-year EBIT growth of 10.53%, LAM RESEARCH CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • LAM RESEARCH CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

A complete fundamental analysis of NASDAQ:LRCX

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall LRCX gets a fundamental rating of 7 out of 10. We evaluated LRCX against 105 industry peers in the Semiconductors & Semiconductor Equipment industry. LRCX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LRCX has a correct valuation and a medium growth rate.

Our latest full fundamental report of LRCX contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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LAM RESEARCH CORP

NASDAQ:LRCX (4/23/2024, 7:11:00 PM)

After market: 893 +5.58 (+0.63%)

887.42

+19.35 (+2.23%)

LRCX News

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Wrapping up Q4 earnings, we look at the numbers and key takeaways for the semiconductor manufacturing stocks, including Lam Research (NASDAQ:LRCX) and its peers.

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The company certainly feels like the right kind of business at the right time for its market.

News Image6 days ago - Yahoo FinanceIs Lam Research Stock Going to $1,050? 1 Wall Street Analyst Thinks So.

The company certainly feels like the right kind of business at the right time for its market.

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News Image12 days ago - Market News VideoNotable Thursday Option Activity: AN, LRCX, IBM
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