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Lam Research (LRCX) Exceeds Market Returns: Some Facts to Consider
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In the latest market close, Lam Research (LRCX - Free Report) reached $847.37, with a +1.39% movement compared to the previous day. This change outpaced the S&P 500's 1.15% gain on the day. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 1.47%.
Shares of the semiconductor equipment maker have depreciated by 5.47% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.53% and the S&P 500's gain of 0.27%.
The upcoming earnings release of Lam Research will be of great interest to investors. On that day, Lam Research is projected to report earnings of $8 per share, which would represent year-over-year growth of 16.79%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.05 billion, indicating a 16.31% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $35.20 per share and revenue of $17.27 billion. These totals would mark changes of +17.57% and +15.86%, respectively, from last 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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.15% lower. Currently, Lam Research is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Lam Research has a Forward P/E ratio of 23.74 right now. This denotes a discount relative to the industry's average Forward P/E of 27.9.
Meanwhile, LRCX's PEG ratio is currently 1.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. LRCX's industry had an average PEG ratio of 2.15 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Exceeds Market Returns: Some Facts to Consider
In the latest market close, Lam Research (LRCX - Free Report) reached $847.37, with a +1.39% movement compared to the previous day. This change outpaced the S&P 500's 1.15% gain on the day. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 1.47%.
Shares of the semiconductor equipment maker have depreciated by 5.47% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.53% and the S&P 500's gain of 0.27%.
The upcoming earnings release of Lam Research will be of great interest to investors. On that day, Lam Research is projected to report earnings of $8 per share, which would represent year-over-year growth of 16.79%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.05 billion, indicating a 16.31% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $35.20 per share and revenue of $17.27 billion. These totals would mark changes of +17.57% and +15.86%, respectively, from last 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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.15% lower. Currently, Lam Research is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Lam Research has a Forward P/E ratio of 23.74 right now. This denotes a discount relative to the industry's average Forward P/E of 27.9.
Meanwhile, LRCX's PEG ratio is currently 1.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. LRCX's industry had an average PEG ratio of 2.15 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.