199.93 +1.70 (0.86%)
After hours: 5:30PM EDT
|Bid||198.45 x 800|
|Ask||199.50 x 1100|
|Day's Range||192.16 - 200.10|
|52 Week Range||122.64 - 209.50|
|Beta (3Y Monthly)||1.57|
|PE Ratio (TTM)||12.26|
|Earnings Date||Jul 31, 2019|
|Forward Dividend & Yield||4.40 (2.30%)|
|1y Target Est||216.42|
Much of it occurs when someone jumps the gun, deciding that the headlines must be traded without any knowledge of what is underneath them.
In a packed Shanghai classroom on a hot afternoon, nearly a hundred "mom-and-pop" investors were honing their trading skills ahead of the first opening bell for China's Nasdaq-style tech board. Eight months after President Xi Jinping unveiled plans for Shanghai's technology innovation board, the first batch of 25 companies - ranging from chip-makers to biotech firms - will debut on the STAR Market. Modeled after Nasdaq, and complete with a U.S-style IPO system, STAR may be China's boldest attempt at capital market reforms yet.
FREMONT, Calif., July 10, 2019 -- Lam Research Corp. (NASDAQ: LRCX) today announced that the company will host its quarterly financial conference call and webcast on Wednesday,.
Lam Research Corp NASDAQ/NGS:LRCXView full report here! Summary * Bearish sentiment is low and declining * Economic output for the sector is expanding but at a slower rate 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. The net inflows of $6.54 billion over the last one-month into ETFs that hold LRCX are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is very weak relative to the trend shown over the past year, and has continued to ease. However, the rate of expansion may accelerate in the coming months. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.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.
Shares of Applied Materials Inc. and Lam Research Inc. are falling in premarket trading Monday after D.A. Davidson analyst Thomas Diffely cut his ratings on both stocks to sell as part of a broader downgrade of the chip-equipment industry. " We are moving to a neutral stance on the semiconductor capital equipment group this morning as the stocks have appreciated significantly YTD while the all-important memory recovery continues to lag expectations and the near term data flow will likely remain negative," he wrote. "There is significant uncertainty in the timing and magnitude of the wafer fab equipment (WFE) recovery and we believe the equipment names will remain largely range-bound until some clarity returns." Diffely said that the sharp gains in semiconductor-equipment shares have "clearly" outpaced the fundamentals. Applied Materials shares have climbed 34% so far this year, while Lam Research shares have risen 35% and the S&P 500 has gained 19%.
Today we'll look at Lam Research Corporation (NASDAQ:LRCX) and reflect on its potential as an investment...
The investment firm is wary of the sector, citing stocks' year-to-date rise and other factors. But it remains bullish on the industry longer term.
Lam Research (LRCX) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
On June 25, Micron Technology (MU) reported better-than-expected earnings results for the third quarter of fiscal 2019, which sent the stock up 13.3% a day after its earnings release.
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.
Shares of Micron Technology Inc. (MU) are down over 14% in the most recent five-day period as the firm's most recent quarterly earnings report failed to impress investors' high expectations for the maker of memory chips. Results comfortably beat the consensus estimate for EPS of $2.74 on $7.28 billion in sales, yet failed to live up to the hype that the high-flying semiconductor stock had generated heading into the report.
Every investor in Lam Research Corporation (NASDAQ:LRCX) should be aware of the most powerful shareholder groups...
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.
"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.