Lam Research Stock To $259?
Lam Research (LRCX) stock has fallen by 20.1% in less than a month, from $249.48 on 25th Feb, 2026 to $199.33 now. What comes next? We believe there is a good chance of a stock rebound considering history of recovery post-dips and our current Attractive but Volatile opinion of the stock. Read Buy or Sell Lam Research Stock to see how we arrive at this opinion.
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, LRCX stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 58%, with median peak return reaching 61%. We define sharp dip as stock going down 20% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
| Period | Past Median Return |
|---|---|
| 1M | 7.9% |
| 3M | 13.3% |
| 6M | 18.0% |
| 12M | 57.6% |
Historical Dip-Wise Details
LRCX had 12 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
- 61% median peak return within 1 year of dip event
- 322 days is the median time to peak return after a dip event
- -19% median max drawdown within 1 year of dip event
| 30 Day Dip | LRCX Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | LRCX | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 58% | 61% | -19% | 322 | ||||
| 4032025 | -27% | -12% | 208% | 285% | -9% | 328 | ||
| 8012024 | -24% | -1% | 17% | 24% | -28% | 354 | ||
| 9152022 | -21% | -6% | 56% | 78% | -24% | 316 | ||
| 7122022 | -20% | -6% | 59% | 63% | -22% | 356 | ||
| 5112022 | -21% | -15% | 20% | 23% | -29% | 267 | ||
| 2082022 | -20% | -6% | -9% | 5% | -45% | 1 | ||
| 9112020 | -22% | 3% | 109% | 129% | 0% | 209 | ||
| 3122020 | -20% | -24% | 124% | 158% | -21% | 354 | ||
| 9122018 | -21% | 3% | 60% | 59% | -17% | 365 | ||
| 2112016 | -20% | -12% | 83% | 87% | 0% | 351 | ||
| 12192011 | -20% | -4% | 5% | 29% | -10% | 99 | ||
| 8222011 | -20% | -15% | -2% | 26% | -6% | 85 | ||
Lam Research Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 26.8% | Pass |
| Revenue Growth (3-Yr Avg) | 5.1% | Pass |
| Operating Cash Flow Margin (LTM) | 34.6% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 41.9 | |
| => Cash To Interest Expense Ratio | 36.1 |
Not sure if you can take a call on LRCX stock? Consider portfolio approach
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