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Here's Why Lam Research (LRCX) Gained But Lagged the Market Today
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In the latest market close, Lam Research (LRCX - Free Report) reached $734.31, with a +0.07% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.16%. On the other hand, the Dow registered a gain of 1.2%, and the technology-centric Nasdaq increased by 1.16%.
The the stock of semiconductor equipment maker has fallen by 9.17% in the past month, lagging the Computer and Technology sector's gain of 1.08% and the S&P 500's gain of 3.48%.
Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $8, marking a 16.79% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.05 billion, up 16.3% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $35.20 per share and revenue of $17.31 billion, which would represent changes of +17.57% and +16.13%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lam Research. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% upward. Lam Research currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 20.85. This indicates a discount in contrast to its industry's Forward P/E of 24.4.
Investors should also note that LRCX has a PEG ratio of 1.41 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. LRCX's industry had an average PEG ratio of 1.84 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 41% of over 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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Here's Why Lam Research (LRCX) Gained But Lagged the Market Today
In the latest market close, Lam Research (LRCX - Free Report) reached $734.31, with a +0.07% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.16%. On the other hand, the Dow registered a gain of 1.2%, and the technology-centric Nasdaq increased by 1.16%.
The the stock of semiconductor equipment maker has fallen by 9.17% in the past month, lagging the Computer and Technology sector's gain of 1.08% and the S&P 500's gain of 3.48%.
Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $8, marking a 16.79% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.05 billion, up 16.3% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $35.20 per share and revenue of $17.31 billion, which would represent changes of +17.57% and +16.13%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lam Research. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% upward. Lam Research currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 20.85. This indicates a discount in contrast to its industry's Forward P/E of 24.4.
Investors should also note that LRCX has a PEG ratio of 1.41 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. LRCX's industry had an average PEG ratio of 1.84 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 41% of over 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.