Looking In The Rear-View Mirror: Lam Research Corporation (LRCX), Southwest Airlines Co. (LUV)

Lam Research Corporation (NASDAQ:LRCX) average daily volatility for this week is 3.85% which is less than the 4.17% recorded over the past month. Its shares dropped by -38.45% or -$90.31 from its last recorded high of $234.88 which it attained on March 13 to close at $144.57 per share. Over the past 52 weeks, the shares of Lam Research Corporation has been trading as low as $122.64 before witnessing a massive surge by 17.88% or $21.93. This price movement has led to the LRCX stock receiving more attention and has become one to watch out for. It jumped by 0.4% on Thursday and this got the market excited. The stock’s beta now stands at 1.38 and when compared to its 200-day moving average and its 50-day moving average, LRCX price stands -14.36% below and 1.85% above respectively.

Lam Research Corporation (LRCX) rose 9.83% this week, a trend that has led to both investors and traders taking note of the stock. Over the past one year, the equity price has embarked on a drop that has seen it decline -26.83% and is now up by 6.17% since start of this year. A look at its monthly performance shows that the stock has recorded a 4.9% gain over the past 30 days. Its equity price climbed by 0.07% over the past three months which led to its overall six-month decrease to stand at -14.59%.

Experts from research firms are bullish about the near-term performance of Lam Research Corporation with most of them predicting a $196.2 price target on a short-term (12 months) basis. The average price target by the analysts will see a 35.71% rise in the stock and would lead to LRCX’s market cap to surge to $30.5B. The stock has been rated an average 2.2, which roughly stands towards the bearish end of the spectrum. Reuters looked into the 19 analysts that track Lam Research Corporation (NASDAQ:LRCX) and find out that 8 of them rated it as a Hold. 11 of the 11 analysts rated it as a Buy or a Strong Buy while 0 advised investors to desist from buying the stock or sell it if they already possess it.

A look at LRCX technical analysis shows that its 14-day Relative Strength Index (RSI) is in a neutral zone after reaching 56.38 point. Its trading volume has lost -1163585 shares compared to readings over the past three months as it recently exchanged 1966415 shares. This means there is reduced activity from short-term traders as per session, its average trading volume is 3130000 shares, and this is 0.63 times the normal volume.

Analysts have predicted a price target for Southwest Airlines Co. (LUV) for 1 year and it stands at an average $61.9/share. This means that it would likely increase by 26.35% from its current position. Some brokerage firms have a lower target for the stock than the average, with one of them setting a price target as low as $52. On the other hand, one analyst is super bullish about the price, setting a target as high as $85.

The LUV stock Stochastic Oscillator (%D) is at 87.57%, which means that it is currently overbought and its prices could dip very soon. The shares P/S ratio stands at 1.29 which compares to the 1 recorded by the industry or the 43.87 by the wider sector. The stock currently has an estimated price-earnings (P/E) multiple of 10.14, which is lower than the 12.44 multiple of 12-month price-earnings (P/E). The company’s earnings have gone up, with a quarterly increase rate of 43.8% over the past five years.

Analysts view Southwest Airlines Co. (NYSE:LUV) as a Buy, with 2 consensus rating. Reuters surveyed 20 analysts that follow LUV and found that 6 of those analysts rated the stock as a Hold. The remaining 14 were divided, with 13 analyst rating it as a Buy or a Strong Buy while 1 analysts advised investors to desist from buying Southwest Airlines Co. (LUV) shares or sell it if they already own it.