181.27 -0.01 (-0.01%)
After hours: 7:42PM EDT
|Bid||179.00 x 1300|
|Ask||181.33 x 900|
|Day's Range||178.59 - 182.53|
|52 Week Range||122.64 - 209.50|
|Beta (3Y Monthly)||1.62|
|PE Ratio (TTM)||11.21|
|Earnings Date||Jul 24, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||4.40 (2.50%)|
|1y Target Est||217.47|
Time and time again over the last six months, chip stocks have shown a knack for reminding us just how low Wall Street's expectations are for the group, thanks to trade tensions and a cyclical downturn. May quarter report is the latest case in point -- particularly given that chip equipment makers are joining chip suppliers in trading higher. Certainly, much of what was shared via Micron's earnings report and call was far from rosy.
Though Micron is still reporting large revenue and memory price declines, its numbers and DRAM outlook were stronger than many feared.
Every investor in Lam Research Corporation (NASDAQ:LRCX) should be aware of the most powerful shareholder groups...
Lam Research (LRCX) closed the most recent trading day at $181.42, moving +0.54% from the previous trading session.
Micron's (NASDAQ:MU) situation continues to deteriorate. With its margins waning and its revenue and profitability falling, MU stock price has fallen meaningfully from its highs. Just two months ago in April, Micron stock was trying to break out and exceed $45. What happened?Source: Shutterstock While the trade war was seemingly heading towards a friendly resolution a few months ago, a tweet from President Trump sent those assumptions down the drain. The tweet sank the stock market, as the PowerShares QQQ ETF (NASDAQ:QQQ) calmly shed 11.5% in the month of May.However, it's had a much more devastating impact on semiconductors, chip makers and memory producers. For instance, Nvidia (NASDAQ:NVDA) tumbled more than 23% in May, MU stock dropped almost 26% from peak to trough and Lam Research (NASDAQ:LRCX) dropped roughly 18%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 Stocks to Buy for $20 or Less Comments that Broadcom (NASDAQ:AVGO) made in conjunction with its second-quarter results didn't help. On Thursday evening, the chip maker said it expects first-half headwinds to persist in the second half of the year, after previously expecting them to lift. That caused Broadcom to issue full-year revenue guidance that was well below analysts' average estimate ($22.5 billion vs. $24.31 billion), inflicting even more pain on the group. What About the Valuation of Micron Stock?Too many people look at MU stock and assume it's a buy because of its low valuation. Many understand how price-earnings (P/E) ratios work, but some don't. They see Micron stock trading at four or five times its earnings and say, "That's a buy to me!"What they don't consider is the very basic equation of the P/E ratio. Quite simply, the ratio is price divided by earnings. When a company's stock falls and its earnings stay flat, its valuation or P/E ratio falls, making it more attractive. However, when companies' earnings fall, their stocks become more expensive.When both price and earnings fall -- which is what's been happening to Micron -- the company's P/E can remain almost constant. Last July, MU stock was trading at almost $60. Analysts' average estimate called for earnings of almost $12 per share during the fiscal year, giving MU stock a forward P/E ratio of about five. Fast forward to June 2019 and the forward consensus earnings estimate has cratered almost 50%, down to $6.35 per share. So, too, has the stock price, which is also down almost 50%.That's not surprising. The decline in estimates, in conjunction with the decline of MU stock, has kept the P/E ratio relatively constant. Thus, MU stock isn't that much cheaper now than it was in the past. Micron's Underlying BusinessNAND memory is a component of Micron's business, making up roughly 30% of its total revenue last quarter. However, another form of memory, DRAM, is the largest piece of MU's pie, making up 64% of its total revenue.Micron's President and CEO, Sanjay Mehrotra, said this about NAND and DRAM:"NAND markets remain oversupplied from the acceleration in bit growth driven by the industry transition to 64-layer 3D NAND. Although fiscal Q2 pricing came in below our expectations, we are optimistic that demand elasticity and seasonal trends will support improving demand growth in the second half of the calendar year.Since our last earnings call, DRAM pricing weakened more than expected. Our demand outlook for calendar 2019 has moderated, led by somewhat greater levels of customer inventory, weakening server demand at several enterprise OEM customers and worse-than-expected CPU shortages."Other executives have made unfavorable observations about memory:Anthony Neri, president and CEO of Hewlett Packard Enterprise (NASDAQ:HPE): "So the overall commodity environment continue to be favorable and there is an oversupply now compared to last year's as you recall there was shortages and costs going up. The DRAM prices are down."Dion Weisler, CEO of HP Inc (NASDAQ:HPQ): "I think broadly speaking, we have seen some easing around the overall supply chain costs in the basket of commodities and logistics."Kelly Kramer, CFO of Cisco Systems (NASDAQ:CSCO), also said the company was benefiting from reduced DRAM prices. Trading MU Stock Click to EnlargeMicron's price action was very discouraging last week , with MU stock topping out near $36. It's now down about 8% from those levels.If MU stock falls below Friday's lows, it could be in some trouble. Those lows buoyed Micron stock in late May and early June. If they can't do so now, then MU stock could tumble to $30. If the selling pressure doesn't relent, it could continue even lower.Now that semis and tech have caught a bid, see if Micron can hurdle $34 and its 20-day moving average. Otherwise, Micron stock looks risky on the long side in the short-term, particularly with a percolating trade war.With all that said, Micron is a boom-bust company. When its business is tough -- like now -- the ride is rough for investors. When its business is good -- and it eventually will be -- MU stock will be a huge winner. Even if MU slides further from here, it will likely be a good hold over the long term. DRAM and NAND aren't going anywhere, and neither is MU stock.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post Should Micron Stock Be Bought or Sold? appeared first on InvestorPlace.
Lam Research Corp NASDAQ/NGS:LRCXView full report here! Summary * Bearish sentiment is low and declining Bearish sentimentShort interest | PositiveShort interest is low for LRCX with fewer than 5% of shares on loan. Additionally, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on June 14. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold LRCX had net inflows of $4.88 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
"Since 2006, value stocks (IVE vs IVW) have underperformed 11 of the 13 calendar years and when they beat growth, it wasn't by much. Cumulatively, through this week, it has been a 122% differential (up 52% for value vs up 174% for growth). This appears to be the longest and most severe drought for value […]
During Wednesday's "Mad Money" program, Jim Cramer called out Lam Research Corp. Cramer felt it was worth buying as the bad news is already priced into the stock. In this daily bar chart of LRCX, below, we can see that prices displayed a strong pattern from the end of December to the end of April.
* KRW and TWD hurt by technology rout * Indonesian rupiah leads intraday declines (Adds text, updates prices) By Ambar Warrick June 13 (Reuters) - Most Asian currencies were weaker on Thursday, with a deteriorating outlook for the global memory chip industry hurting the South Korean won and Taiwan dollar. The Chinese yuan edged about 0.02% lower to the dollar, with further losses being mitigated by a stronger than expected midpoint.
that cited delayed chip equipment orders from memory makers put markets on edge once again about how quickly the chip industry will recover from its current downturn. In his downgrade note, Evercore's C.J. Muse reports that steadily weakening DRAM and NAND flash memory prices are causing memory makers to delay both equipment orders related to capacity expansion and technology (manufacturing process) upgrades.
lead semiconductor stocks lower Wednesday after analysts at Evercore ISI cut their target price on the stock and warned that a global recovery in chip memory demand could be delayed until late next year. Evercore analyst C.J. Muse lowered his target on Lam Research by $30 to $195 per share, and reduced his rating to 'in line' from 'outperform', even as it described the group as a "high quality company with superior earnings power through cycles". Evercore cited excess DRAM and NAND inventories, as well as expected cuts in capital spending from major chipmakers, as driving the delayed sector rebound.
Shares of Lam Research Corp. were down 3.4% in premarket trading Wednesday after Evercore ISI analyst C.J. Muse downgraded the stock to in-line from outperform, arguing that a memory recovery now may not happen until the second half of calendar 2020. He had previously expected a first-half rebound. "At a bigger picture level, there is no change to our view on Lam - a high quality company with superior earnings power through cycles - just that the severity of the current memory correction combined with timing of a recovery leads us to see a better buying opportunity ahead," Muse wrote. "Amidst ever worsening pricing across both DRAM and NAND and industry participants moving closer and closer to cash costs, we now are hearing about delays not only in capacity adds but also technology buys." He cut his price target on the stock to $195 from $225. Shares are up almost 40% so far this year, as the S&P 500 has gained 15%.
This softness in energy pricing, though not good for the oil patch, and certainly a negative for the railroads, will help in two ways.
A growing manufacturer is ramping up production and will continue to hire hundreds of employees at its new Springfield facility — a $223 million investment that resulted in the company's second area location.
How far off is Lam Research Corporation (NASDAQ:LRCX) from its intrinsic value? Using the most recent financial data...
In the latest trading session, Lam Research (LRCX) closed at $172.43, marking a -1.25% move from the previous day.
Lam Research Corporation (LRCX) today announced that Sohail Ahmed has joined the company’s board of directors effective as of June 3, 2019. Mr. Ahmed previously served as senior vice president and general manager of the Technology Manufacturing Group at Intel Corporation. In that role, he oversaw the research and development (R&D) as well as the deployment of next-generation silicon logic technologies for production of future Intel microprocessors.
Soroban Capital Partners is an NYC-based hedge fund that was co-founded by Eric W. Mandelblatt, Gaurav Kapadia, and Scott Friendman in 2010 with an initial capital of $130 million. Over the years it had great returns and it has managed to raise its AUM above $11 billion in 2017. Prior to co-founding Soroban Capital Partners, […]
Zacks Value Trader Highlights: Micron, Broadcom, NVIDIA, Lam Research and Vishay Intertechnology
Lam Research (LRCX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.