LAM RESEARCH CORP (NASDAQ:LRCX) – A Strong Growth Stock with Reasonable Valuation

LAM RESEARCH CORP (NASDAQ:LRCX) was identified as an affordable growth stock by our stock screener. The company, a key player in semiconductor manufacturing equipment, demonstrates strong growth potential while maintaining solid profitability and financial health. Its valuation remains reasonable compared to industry peers, making it an interesting candidate for investors seeking growth at a sensible price.

Growth Prospects

• Past Performance: LRCX has delivered impressive growth, with earnings per share (EPS) increasing by 28.78% over the past year and revenue growing by 20.33%.
• Future Expectations: Analysts project continued growth, with EPS expected to rise by 15.50% annually and revenue by 10.63% in the coming years.
• Stability: The company’s growth trajectory remains consistent, with no major fluctuations in recent performance.

Valuation Assessment

• P/E Ratio: At 23.85, LRCX trades below the industry average P/E of 35.78, suggesting a more attractive valuation.
• Enterprise Value/EBITDA: The ratio indicates LRCX is cheaper than 68.18% of its peers.
• PEG Ratio: A low PEG ratio suggests the stock is reasonably priced relative to its expected earnings growth.

Profitability & Financial Health

• Profit Margins: LRCX boasts a 27.19% profit margin, outperforming 88.18% of its industry competitors.
• Return on Equity (ROE): At 48.98%, the company ranks among the top performers in its sector.
• Financial Stability: With a strong Altman-Z score of 10.38 and manageable debt levels, LRCX maintains a healthy balance sheet.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.
For a deeper dive, review the full fundamental report on LRCX.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.