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Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
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In the latest market close, Lam Research (LRCX - Free Report) reached $1,054.78, with a -0.09% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.09%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.3%.
Shares of the semiconductor equipment maker witnessed a gain of 10.76% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.18% and the S&P 500's gain of 3.38%.
Market participants will be closely following the financial results of Lam Research in its upcoming release. It is anticipated that the company will report an EPS of $7.52, marking a 25.75% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.81 billion, indicating a 18.91% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $29.67 per share and revenue of $14.84 billion, indicating changes of -13.17% and -14.83%, respectively, compared to the previous 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 presently features a Zacks Rank of #2 (Buy).
In the context of valuation, Lam Research is at present trading with a Forward P/E ratio of 35.58. This indicates a premium in contrast to its industry's Forward P/E of 34.21.
Also, we should mention that LRCX has a PEG ratio of 3.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.34 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
In the latest market close, Lam Research (LRCX - Free Report) reached $1,054.78, with a -0.09% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.09%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.3%.
Shares of the semiconductor equipment maker witnessed a gain of 10.76% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.18% and the S&P 500's gain of 3.38%.
Market participants will be closely following the financial results of Lam Research in its upcoming release. It is anticipated that the company will report an EPS of $7.52, marking a 25.75% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.81 billion, indicating a 18.91% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $29.67 per share and revenue of $14.84 billion, indicating changes of -13.17% and -14.83%, respectively, compared to the previous 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 presently features a Zacks Rank of #2 (Buy).
In the context of valuation, Lam Research is at present trading with a Forward P/E ratio of 35.58. This indicates a premium in contrast to its industry's Forward P/E of 34.21.
Also, we should mention that LRCX has a PEG ratio of 3.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.34 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.