Score 8.6 (out of 10): LAM RESEARCH poised to rally +25.2% rally in 3 months

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What’s Going On Here?

LAM RESEARCH CORP, the semiconductor processing equipment company, has seen its share price target raised to $800 by brokerage firm ‘Cowen’ implying an upside price target of +33% from current levels. The company will report quarterly earnings on January 26.

Why Now?

LAM RESEARCH CORP has reached a new shorter-term low. Previously, during similar occasions, LAM RESEARCH CORP shares had a median return of +25.2%, over the following 3 months based on 10 historical occasions with 8 of those showing positive returns (80% hit ratio). This buy signal for LAM RESEARCH CORP received a high score of 8.6 (out of 10). This insight was generated on 2022-January-10 with last price of 664.29.

What’s This Company About?

LAM RESEARCH CORP is in the Semiconductor Equipment business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 10.6% more (average). Ticker symbol: LRCX US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 831.56 (+25.2%) has been reached. Based on LAM RESEARCH CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 610.89 (last price at 664.29), which is equivalent to a -8% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

28.1% (September-2021), -0.6% (June-2021), 29.2% (March-2021), 35.4% (December-2020), 30.8% (August-2020), -8.8% (February-2020), 30.1% (October-2019), 4.3% (May-2019), 7.8% (March-2019), 22.3% (October-2018).

Historical Chart:

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Summary:

NameLam Research
ViewUp
Star (1 to 10)8.6
Target+25.2%
Time90 days
Hit Rate80%

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