LAM RESEARCH CORP (NASDAQ:LRCX) Fits Minervini Trend Template and High Growth Momentum Criteria

LAM RESEARCH CORP (NASDAQ:LRCX) has been recognized as a potential choice for both Mark Minervini’s trend-following strategy and high-growth momentum investing. The selection method blends Minervini’s detailed Trend Template, a technical system for spotting stocks in strong upward trends, with a High Growth Momentum (HGM) rating to confirm the company shows faster earnings and revenue growth. This combined method assists investors in locating stocks with both solid price movement and strong fundamental performance.

Why LRCX Matches the Minervini Trend Template

Minervini’s Trend Template demands stocks to fulfill several technical conditions to verify a strong upward trend. Here’s how LRCX measures up:

• Price Above Key Moving Averages:

  • The stock is priced at $94.84, significantly above its 50-day SMA ($93.22), 150-day SMA ($81.75), and 200-day SMA ($80.13).
  • The 50-day SMA is higher than both the 150-day and 200-day SMAs, confirming positive alignment across time periods.
  • The 200-day SMA has been rising for months, supporting long-term stability.

• Relative Strength:

  • LRCX has a ChartMill Relative Strength (CRS) score of 84.02, meaning it performs better than 84% of all stocks, a key feature of leading market performers.

• Price Near 52-Week High:

  • The stock is within 7.5% of its 52-week high ($102.59), showing strong movement.
  • It has also climbed notably from its 52-week low ($56.32), up 68%, meeting Minervini’s condition of being at least 30% above its low.

These elements fit Minervini’s approach of trading stocks in Stage 2 upward trends, where price movement is strongest and dips often present buying chances.

High Growth Momentum Fundamentals

Beyond technical stability, LRCX displays faster growth, a key trait of high-momentum stocks:

• Earnings Growth:

  • EPS increased 36.6% YoY (TTM), with the latest quarter showing a 63.4% YoY rise.
  • The company has exceeded EPS estimates in all of the last four quarters, with an average beat of 3.92%.

• Revenue Expansion:

  • Revenue grew 23.7% YoY, with the most recent quarter up 33.6%.
  • Analysts have increased next-year EPS estimates by 6.94% over the past three months, indicating confidence in continued growth.

• Profit Margins:

  • Margins improved to 33.3% in the latest quarter, up from 26.8% a year ago, reflecting better operational performance.

These numbers suggest LRCX is not just benefiting from technical factors but also from strong business results, a key point for growth investors.

Technical Analysis Summary

ChartMill’s technical report gives LRCX a rating of 7/10, noting:

• A positive long-term trend but a neutral short-term trend, hinting at possible consolidation before further gains.
• The stock is trading near the lower part of its recent range ($90.94–$102.59), which could offer a buying chance if support remains.
• Resistance is seen around $101.33–$101.74, a move above which could signal renewed movement.

Read the full technical analysis here.

Conclusion

LRCX fits the requirements for both Minervini’s trend-following strategy and high-growth momentum investing, pairing solid technicals with faster earnings and revenue growth. While the stock is currently in a holding pattern, its long-term upward trend and improving fundamentals make it a strong option for further review.

For more high-growth momentum stocks that align with the Minervini Trend Template, check our High Growth Momentum + Trend Template screen.

Disclaimer: This is not investment advice. Our content is for informational and educational purposes only. Please read our full disclaimer here.