High-Flyers Near Resistance: 3 Stocks to Watch for a Dip

Group 1: Lam Research (LRCX) - Lam Research is essential to the semiconductor industry, providing crucial equipment for wafer fabrication, particularly in etch and deposition [2][3] - The company reported a record earnings per share (EPS) and a gross margin exceeding 50% for the fourth consecutive quarter [3] - Despite its strong fundamentals, LRCX stock is likely to remain rangebound, with recent price action constrained by Bollinger Bands and limited momentum indicators [4][6] Group 2: Arista Networks (ANET) - Arista Networks has benefited from significant capital expenditure by AI hyperscalers, positioning itself as a market leader in data center switching [7][8] - The stock has risen over 73% in the past 12 months, but trades at a high valuation of over 55x earnings, raising concerns about its premium compared to historical averages [8][10] - ANET stock is currently facing resistance near its all-time high, with momentum indicators suggesting it may be approaching oversold territory [10] Group 3: Shopify (SHOP) - Shopify is a leading e-commerce company, but its stock has declined over 7.5% in the 30 days ending September 9, despite a 32% increase following a strong earnings report [11][12] - The stock trades at approximately 92x earnings, significantly higher than its three-year average, indicating potential for further profit-taking [12][14] - Analysts are raising price targets for SHOP stock, with firm support around $137, suggesting that investors may not have to wait long for a positive turn [14][15]