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Lam Research (LRCX) Dips More Than Broader Markets: What You Should Know

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Lam Research (LRCX - Free Report) closed at $498.17 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's daily loss of 0.97%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.49%.

Prior to today's trading, shares of the semiconductor equipment maker had gained 2.71% over the past month. This has lagged the Computer and Technology sector's gain of 6.06% and the S&P 500's gain of 4.71% in that time.

Investors will be hoping for strength from Lam Research as it approaches its next earnings release, which is expected to be April 20, 2022. The company is expected to report EPS of $7.52, up 0.4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.25 billion, up 10.4% from the prior-year quarter.

LRCX's full-year Zacks Consensus Estimates are calling for earnings of $32.72 per share and revenue of $17.23 billion. These results would represent year-over-year changes of +20.12% and +17.78%, respectively.

It is also important to note the recent changes to analyst estimates for Lam Research. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% lower. Lam Research is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 15.39. For comparison, its industry has an average Forward P/E of 16.01, which means Lam Research is trading at a discount to the group.

We can also see that LRCX currently has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.34 at yesterday's closing price.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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