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Lam Research (LRCX) Declines More Than Market: Some Information for Investors
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The most recent trading session ended with Lam Research (LRCX - Free Report) standing at $736.93, reflecting a -1.65% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.8%. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.18%.
Shares of the semiconductor equipment maker witnessed a gain of 7.48% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.11% and the S&P 500's gain of 3.4%.
Market participants will be closely following the financial results of Lam Research in its upcoming release. On that day, Lam Research is projected to report earnings of $7.05 per share, which would represent a year-over-year decline of 34.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.71 billion, down 29.72% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $27.56 per share and revenue of $14.62 billion, indicating changes of -19.34% and -16.13%, respectively, compared to the previous year.
It is also important to note the 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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% downward. At present, Lam Research boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Lam Research is currently exchanging hands at a Forward P/E ratio of 27.18. This signifies a premium in comparison to the average Forward P/E of 23.87 for its industry.
One should further note that LRCX currently holds a PEG ratio of 4.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 3.5 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.
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.
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) Declines More Than Market: Some Information for Investors
The most recent trading session ended with Lam Research (LRCX - Free Report) standing at $736.93, reflecting a -1.65% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.8%. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.18%.
Shares of the semiconductor equipment maker witnessed a gain of 7.48% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.11% and the S&P 500's gain of 3.4%.
Market participants will be closely following the financial results of Lam Research in its upcoming release. On that day, Lam Research is projected to report earnings of $7.05 per share, which would represent a year-over-year decline of 34.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.71 billion, down 29.72% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $27.56 per share and revenue of $14.62 billion, indicating changes of -19.34% and -16.13%, respectively, compared to the previous year.
It is also important to note the 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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% downward. At present, Lam Research boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Lam Research is currently exchanging hands at a Forward P/E ratio of 27.18. This signifies a premium in comparison to the average Forward P/E of 23.87 for its industry.
One should further note that LRCX currently holds a PEG ratio of 4.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 3.5 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.