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Lam Research (LRCX) Gains As Market Dips: What You Should Know

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Lam Research (LRCX - Free Report) closed the most recent trading day at $444.28, moving +0.27% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.19%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.09%.

Heading into today, shares of the semiconductor equipment maker had lost 0.4% over the past month, lagging the Computer and Technology sector's gain of 8.91% and the S&P 500's gain of 4.7% in that time.

Wall Street will be looking for positivity from Lam Research as it approaches its next earnings report date. The company is expected to report EPS of $9.93, up 16.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.08 billion, up 20.25% from the year-ago period.

LRCX's full-year Zacks Consensus Estimates are calling for earnings of $34.63 per share and revenue of $18.21 billion. These results would represent year-over-year changes of +4.56% and +5.69%, respectively.

Investors might also notice recent changes to analyst estimates for Lam Research. 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. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lam Research is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 12.79. This valuation marks a discount compared to its industry's average Forward P/E of 14.57.

Investors should also note that LRCX has a PEG ratio of 1.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LRCX's industry had an average PEG ratio of 1.77 as of yesterday's close.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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