Is Lam Research Stock Built to Withstand More Downside?
Lam Research (LRCX) stock is down 6.1% in a day. The recent slide reflects geopolitical risks, broader market woes, and insider sales, but sharp drops like this often raise a tougher question: Is the weakness temporary or a sign of deeper cracks in the story?
Before judging its downturn resilience, let’s look at where Lam Research stands today.
- Size: Lam Research is a $272 Bil company with $21 Bil in revenue currently trading at $217.01.
- Fundamentals: Last 12 months’ revenue growth of 26.8% and operating margin of 33.8%.
- Liquidity: Has a Debt to Equity ratio of 0.02 and Cash to Assets ratio of 0.29
- Valuation: Lam Research stock is currently trading at P/E multiple of 43.8 and P/EBIT multiple of 37.9
- Has returned (median) 238% within a year following sharp dips since 2010. See LRCX Dip Buy Analysis.
These metrics point to a Very Strong operational performance, alongside a very high valuation—making the stock Attractive but volatile. For details, see Buy or Sell LRCX Stock
That brings us to the key consideration for investors worried about this fall: how resilient is LRCX stock if markets turn south? This is where our downturn resilience framework comes in. Suppose LRCX stock falls another 20-30% to $152 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- LRCX stock fell 56.8% from a high of $72.98 on 14 January 2022 to $31.50 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 11 December 2023
- Since then, the stock increased to a high of $249.48 on 25 February 2026 , and currently trades at $217.01
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -56.8% | -25.4% |
| Time to Full Recovery | 423 days | 464 days |
2020 Covid Pandemic
- LRCX stock fell 45.0% from a high of $34.16 on 13 February 2020 to $18.79 on 20 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 14 July 2020
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -45.0% | -33.9% |
| Time to Full Recovery | 116 days | 148 days |
2018 Correction
- LRCX stock fell 46.1% from a high of $22.87 on 12 March 2018 to $12.33 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 9 September 2019
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.1% | -19.8% |
| Time to Full Recovery | 259 days | 120 days |
2008 Global Financial Crisis
- LRCX stock fell 75.0% from a high of $6.00 on 17 July 2007 to $1.50 on 19 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 May 2014
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -75.0% | -56.8% |
| Time to Full Recovery | 2,011 days | 1,480 days |
Feeling jittery about LRCX stock? Consider a portfolio approach.
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