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, combines solid growth with strong profitability and financial health while trading at a reasonable valuation.

Growth Prospects

• Past Growth: LRCX has demonstrated strong historical 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 15.06% annually and revenue by 10.38% in the coming years.
• Stable Trends: The company maintains a steady growth trajectory, with no signs of significant slowdown in either earnings or sales expansion.

Valuation Assessment

• P/E Ratio: At 27.30, LRCX trades slightly below the industry average P/E of 41.22, making it relatively cheaper than many peers.
• Forward P/E: The forward P/E of 24.12 is also more attractive compared to the sector average of 31.54.
• PEG Ratio: A low PEG ratio suggests the stock is reasonably priced relative to its expected earnings growth.

Profitability & Financial Health

• High Profit Margins: LRCX boasts a 27.19% profit margin and 30.88% operating margin, ranking among the top in its industry.
• Strong Returns: The company delivers a 48.98% return on equity (ROE) and 32.17% return on invested capital (ROIC), well above industry averages.
• Solid Balance Sheet: With an Altman-Z score of 11.40 and manageable debt levels, LRCX faces minimal solvency risks.

For a deeper look at the company’s fundamentals, review the full analysis of LAM RESEARCH CORP.

Our Affordable Growth screener lists more stocks with strong growth and reasonable valuations, updated daily.

Disclaimer

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