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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 the most recent trading day at $477, moving -0.38% from the previous trading session. This move lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 3.16%.
Prior to today's trading, shares of the semiconductor equipment maker had lost 5.18% over the past month. This has lagged the Computer and Technology sector's loss of 3.13% and was narrower than the S&P 500's loss of 5.39% 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 $6.53 per share, which would represent a year-over-year decline of 11.76%. Meanwhile, our latest consensus estimate is calling for revenue of $3.82 billion, down 5.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $33.30 per share and revenue of $17.64 billion. These totals would mark changes of +0.54% and +2.41%, respectively, from last year.
Any recent changes to analyst estimates for Lam Research should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Lam Research is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 14.38. This valuation marks a discount compared to its industry's average Forward P/E of 18.
Investors should also note that LRCX has a PEG ratio of 8.26 right now. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 2.92 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 25% 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) Dips More Than Broader Markets: What You Should Know
Lam Research (LRCX - Free Report) closed the most recent trading day at $477, moving -0.38% from the previous trading session. This move lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 3.16%.
Prior to today's trading, shares of the semiconductor equipment maker had lost 5.18% over the past month. This has lagged the Computer and Technology sector's loss of 3.13% and was narrower than the S&P 500's loss of 5.39% 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 $6.53 per share, which would represent a year-over-year decline of 11.76%. Meanwhile, our latest consensus estimate is calling for revenue of $3.82 billion, down 5.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $33.30 per share and revenue of $17.64 billion. These totals would mark changes of +0.54% and +2.41%, respectively, from last year.
Any recent changes to analyst estimates for Lam Research should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Lam Research is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 14.38. This valuation marks a discount compared to its industry's average Forward P/E of 18.
Investors should also note that LRCX has a PEG ratio of 8.26 right now. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 2.92 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 25% 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.