Why Lam Research (LRCX) is a Top Growth Stock for the Long-Term

Core Viewpoint - Zacks Premium offers various tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1][2]. Summary by Category Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential for market outperformance over the next 30 days [2][3]. Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, helping value investors find attractive investment opportunities [3]. Growth Score - The Growth Style Score evaluates a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow, targeting stocks with sustainable growth potential [4]. Momentum Score - The Momentum Style Score assists investors in capitalizing on price trends by analyzing short-term price changes and earnings estimate revisions, emphasizing the importance of market trends [5]. VGM Score - The VGM Score combines the three Style Scores (Value, Growth, Momentum) to provide a comprehensive rating, helping investors identify stocks with the best overall potential [6]. Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8]. Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [9][10]. Company Spotlight: Lam Research (LRCX) - Lam Research Corporation, based in Fremont, CA, provides wafer fabrication equipment and services to the semiconductor industry and related markets [11]. - LRCX holds a Zacks Rank of 3 (Hold) with a VGM Score of B, indicating potential for growth [11]. - The company is projected to achieve year-over-year earnings growth of 5.8% for the current fiscal year, supported by upward revisions in earnings estimates from analysts [12].