Lam Research (LRCX) is a Top-Ranked Momentum Stock: Should You Buy?

Core Insights - The article emphasizes the importance of utilizing Zacks Premium and its various tools to enhance investment confidence and market opportunities [1][2] Zacks Style Scores - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive and discounted stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth, and momentum characteristics [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7] Stock to Watch: 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 2 (Buy) rating on the Zacks Rank and has a VGM Score of B, indicating strong potential [11] - The stock has a Momentum Style Score of A, with shares increasing by 32.8% over the past four weeks [12] - Recent earnings estimates for fiscal 2026 have been revised upward, with the Zacks Consensus Estimate rising by $0.12 to $4.50 per share [12] - LRCX has an average earnings surprise of +6.7%, making it a strong candidate for investors [12]