Lam Research Corporation (LRCX) Soars to 52-Week High, Time to Cash Out?

Core Viewpoint - Lam Research (LRCX) has shown significant stock performance, with a 4.2% increase over the past month and a 133% gain since the beginning of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Electronics - Semiconductors industry [1] Financial Performance - In the last earnings report on October 22, 2025, Lam Research reported an EPS of $1.26, exceeding the consensus estimate of $1.21, marking a consistent record of positive earnings surprises over the last four quarters [2] - For the current fiscal year, Lam Research is projected to achieve earnings of $4.79 per share on revenues of $21.04 billion, reflecting a 15.7% increase in EPS and a 14.11% increase in revenues. For the next fiscal year, earnings are expected to rise to $5.57 per share on revenues of $23.63 billion, indicating year-over-year changes of 16.23% and 12.33%, respectively [3] Valuation Metrics - Lam Research's current valuation metrics indicate a trading multiple of 35.1X current fiscal year EPS estimates, which is below the peer industry average of 37.7X. On a trailing cash flow basis, the stock trades at 37.7X compared to the peer group's average of 22.8X. The PEG ratio stands at 1.73, suggesting that the company is not positioned among the top tier from a value perspective [7] Style Scores - The stock has a Value Score of D, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of B. These style scores can assist investors in selecting stocks that align with their investment strategies [6][5] Zacks Rank - Lam Research holds a Zacks Rank of 2 (Buy), supported by a favorable earnings estimate revision trend. This rank is crucial as it takes precedence over style scores in determining stock selection [8] - The company meets the criteria for investment recommendations, as it carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) along with Style Scores of A or B, indicating potential for further growth in the upcoming weeks and months [9]