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Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
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Lam Research (LRCX - Free Report) closed at $521.51 in the latest trading session, marking a -1.62% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Coming into today, shares of the semiconductor equipment maker had gained 7.82% in the past month. In that same time, the Computer and Technology sector gained 10.71%, while the S&P 500 gained 3.71%.
Investors will be hoping for strength from Lam Research as it approaches its next earnings release, which is expected to be April 19, 2023. In that report, analysts expect Lam Research to post earnings of $9.98 per share. This would mark year-over-year growth of 34.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.82 billion, down 5.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $33.30 per share and revenue of $17.64 billion, which would represent changes of +0.54% and +2.41%, respectively, from the prior year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lam Research currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 15.92. For comparison, its industry has an average Forward P/E of 19.18, which means Lam Research is trading at a discount to the group.
Also, we should mention that LRCX has a PEG ratio of 9.15. 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 3.13 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 102, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
Lam Research (LRCX - Free Report) closed at $521.51 in the latest trading session, marking a -1.62% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Coming into today, shares of the semiconductor equipment maker had gained 7.82% in the past month. In that same time, the Computer and Technology sector gained 10.71%, while the S&P 500 gained 3.71%.
Investors will be hoping for strength from Lam Research as it approaches its next earnings release, which is expected to be April 19, 2023. In that report, analysts expect Lam Research to post earnings of $9.98 per share. This would mark year-over-year growth of 34.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.82 billion, down 5.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $33.30 per share and revenue of $17.64 billion, which would represent changes of +0.54% and +2.41%, respectively, from the prior year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lam Research currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 15.92. For comparison, its industry has an average Forward P/E of 19.18, which means Lam Research is trading at a discount to the group.
Also, we should mention that LRCX has a PEG ratio of 9.15. 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 3.13 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 102, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.