Lam Research Corporation (LRCX) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been Lam Research (LRCX). Shares have been marching higher, with the stock up 19.7% over the past month. The stock hit a new 52-week high of $158.25 in the previous session. Lam Research has gained 117.2% since the start of the year compared to the 28.6% gain for the Zacks Computer and Technology sector and the 46.7% return for the Zacks Electronics - Semiconductors industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 22, 2025, Lam Research reported EPS of $1.26 versus consensus estimate of $1.21 while it beat the consensus revenue estimate by 3.64%.For the current fiscal year, Lam Research is expected to post earnings of $4.72 per share on $20.78 in revenues. This represents a 14.01% change in EPS on a 12.72% change in revenues. For the next fiscal year, the company is expected to earn $5.44 per share on $23.1 in revenues. This represents a year-over-year change of 15.19% and 11.18%, respectively.Valuation MetricsThough Lam Research has recently hit a 52-week high, what is next for Lam Research? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Lam Research has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 33.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 41.6X. On a trailing cash flow basis, the stock currently trades at 35.1X versus its peer group's average of 22.1X. Additionally, the stock has a PEG ratio of 1.64. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Lam Research currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Lam Research meets the list of requirements. Thus, it seems as though Lam Research shares could have potential in the weeks and months to come.How Does LRCX Stack Up to the Competition?Shares of LRCX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Amkor Technology, Inc. (AMKR). AMKR has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of A.Earnings were strong last quarter. Amkor Technology, Inc. beat our consensus estimate by 21.43%, and for the current fiscal year, AMKR is expected to post earnings of $1.74 per share on revenue of $6.59 billion.Shares of Amkor Technology, Inc. have gained 16.3% over the past month, and currently trade at a forward P/E of 29.3X and a P/CF of 8.59X.The Electronics - Semiconductors industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LRCX and AMKR, even beyond their own solid fundamental situation.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lam Research Corporation (LRCX): Free Stock Analysis Report Amkor Technology, Inc. (AMKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks