Today we’ll take a look at the well-established Lam Research Corporation (NASDAQ: LRCX). The company’s stock has received a lot of attention due to substantial price movement on the NASDAQGS in recent months, hitting US $ 652 at one point, and falling to a low of US $ 566. Certain movements in stock prices can give investors a better opportunity to get into the stock, and potentially buy at a lower price. One question that needs to be answered is whether Lam Research’s current price of US $ 570 reflects the true value of the large cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at Lam Research’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Lam Research
What is Lam Research worth?
Good news for investors – Lam Research is still trading fairly low. According to my assessment, the stock’s intrinsic value is $ 842.37, but it is currently trading at US $ 570 in the stock market, which means there is still an opportunity to buy now. What’s more interesting is that Lam Research’s stock price is quite volatile, giving us more chances to buy as the stock price might go down (or up) in the future. . This is based on its high beta, which is a good indicator of how the stock is moving relative to the rest of the market.
What kind of growth will Lam Research generate?
Investors looking to grow their portfolio may want to consider the prospects of a company before buying its shares. Buying a large business with a solid outlook for a cheap price is always a good investment, so let’s take a look at the future expectations of the business as well. Lam Research’s profits over the next few years are expected to increase by 43%, indicating a very optimistic future. This should lead to more robust cash flow, fueling a higher value of the stock.
What this means for you:
Are you a shareholder? Since LRCX is currently undervalued, maybe now is a great time to build up more of your holdings in inventory. With a positive outlook on the horizon, it seems that this growth has not yet been fully reflected in the share price. However, there are also other factors such as the capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping your eye on LRCX for a while, now might be the time to take a leap. Its promising future prospects are not yet fully reflected in the current share price, which means it is not too late to buy LRCX. But before making any investment decisions, consider other factors such as a strong balance sheet, in order to make a well-informed purchase.
So while the quality of the benefits is important, it is just as important to consider the risks that Lam Research is currently facing. At Simply Wall St, we found 1 warning sign for Lam Research and we think they deserve your attention.
If you’re no longer interested in Lam Research, you can use our free platform to view our list of over 50 other high growth stocks.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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