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Lam Research (LRCX) Gains But Lags Market: What You Should Know
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In the latest trading session, Lam Research (LRCX - Free Report) closed at $620.59, marking a +0.24% move from the previous day. This change lagged the S&P 500's 0.4% gain on the day. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.45%.
Prior to today's trading, shares of the semiconductor equipment maker had lost 6.23% over the past month. This has lagged the Computer and Technology sector's loss of 1.45% and the S&P 500's loss of 1.38% 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 $6.07, down 41.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.41 billion, down 32.79% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.82 per share and revenue of $14.47 billion. These totals would mark changes of -21.51% and -16.96%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Lam Research. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% higher. Lam Research is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 23.08. This valuation marks a premium compared to its industry's average Forward P/E of 22.
Meanwhile, LRCX's PEG ratio is currently 3.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 2.83 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 30, which puts it in the top 12% 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.
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
In the latest trading session, Lam Research (LRCX - Free Report) closed at $620.59, marking a +0.24% move from the previous day. This change lagged the S&P 500's 0.4% gain on the day. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.45%.
Prior to today's trading, shares of the semiconductor equipment maker had lost 6.23% over the past month. This has lagged the Computer and Technology sector's loss of 1.45% and the S&P 500's loss of 1.38% 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 $6.07, down 41.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.41 billion, down 32.79% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.82 per share and revenue of $14.47 billion. These totals would mark changes of -21.51% and -16.96%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Lam Research. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% higher. Lam Research is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 23.08. This valuation marks a premium compared to its industry's average Forward P/E of 22.
Meanwhile, LRCX's PEG ratio is currently 3.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 2.83 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 30, which puts it in the top 12% 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.
To follow LRCX in the coming trading sessions, be sure to utilize Zacks.com.