Another pick is Lam Research Corporation LRCX, which supplies wafer-fabrication equipment (“WFE”) and services to the semiconductor industry. The improving WFE market, robust demand for server DRAM and elevated adoption rates of 3D NAND technology will continue to propel the company’s growth. The stock appreciated 74.1% in the last year.
Based on the Zacks Consensus Estimate, Lam is anticipated to finish fiscal 2018 with EPS growth of 48% and sales growth of 28.8%. On top of this, the stock currently trades at a forward P/E multiple of 13.1x, which is lower than the industry average of 19.4x. Lam is a Zacks Rank #2 (Buy) stock and has a VGM Score of A.