Building an investment portfolio from scratch can be difficult, especially if you're new to investing. It's easy to feel overwhelmed with so many different investment options out there, but focusing on stocks that are set to outperform the market over the next 12 months is an excellent place to start.
Now, let's break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success.
Headquartered in Fremont, CA, Lam Research Corporation supplies wafer fabrication equipment and services to the semiconductor industry. In addition, it serves the related markets that rely on semiconductor processes and require production-proven manufacturing capabilities, such as complementary metal-oxide-semiconductor image sensors and micro-electromechanical systems (MEMS).
On December 5, 2016, LRCX was added to the Zacks Focus List at $10.05 per share. Shares have increased 715.32% to $81.94 since then.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.18 to $3.69. LRCX boasts an average earnings surprise of 6.9%.
Additionally, Lam Research's earnings are expected to grow 23.4% for the current fiscal year.
Since stock prices respond to earnings estimate revisions, it can be very profitable to buy stocks with an increased earnings outlook. By buying a Focus List stock like LRCX, then, you're likely getting into a company whose future earnings estimates will be raised, potentially leading to price momentum.
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Lam Research Corporation (LRCX) : Free Stock Analysis Report
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