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Lam Research (LRCX) Gains But Lags Market: What You Should Know
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Lam Research (LRCX - Free Report) closed the most recent trading day at $432, moving +1.23% from the previous trading session. This move lagged the S&P 500's daily gain of 1.83%. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the semiconductor equipment maker had lost 9.08% over the past month, outpacing the Computer and Technology sector's loss of 9.85% and lagging the S&P 500's loss of 5.51% in that time.
Lam Research will be looking to display strength as it nears its next earnings release. On that day, Lam Research is projected to report earnings of $9.53 per share, which would represent year-over-year growth of 14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.92 billion, up 14.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $37.60 per share and revenue of $19.34 billion, which would represent changes of +13.53% and +12.27%, respectively, from the prior year.
Any recent changes to analyst estimates for Lam Research should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Lam Research currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 11.35. For comparison, its industry has an average Forward P/E of 13.59, which means Lam Research is trading at a discount to the group.
We can also see that LRCX currently has a PEG ratio of 0.96. 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 1.53 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 92, which puts it in the top 37% 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.
To follow LRCX in the coming trading sessions, be sure to utilize Zacks.com.
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Lam Research (LRCX) Gains But Lags Market: What You Should Know
Lam Research (LRCX - Free Report) closed the most recent trading day at $432, moving +1.23% from the previous trading session. This move lagged the S&P 500's daily gain of 1.83%. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the semiconductor equipment maker had lost 9.08% over the past month, outpacing the Computer and Technology sector's loss of 9.85% and lagging the S&P 500's loss of 5.51% in that time.
Lam Research will be looking to display strength as it nears its next earnings release. On that day, Lam Research is projected to report earnings of $9.53 per share, which would represent year-over-year growth of 14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.92 billion, up 14.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $37.60 per share and revenue of $19.34 billion, which would represent changes of +13.53% and +12.27%, respectively, from the prior year.
Any recent changes to analyst estimates for Lam Research should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Lam Research currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 11.35. For comparison, its industry has an average Forward P/E of 13.59, which means Lam Research is trading at a discount to the group.
We can also see that LRCX currently has a PEG ratio of 0.96. 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 1.53 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 92, which puts it in the top 37% 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.
To follow LRCX in the coming trading sessions, be sure to utilize Zacks.com.