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Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
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Lam Research (LRCX - Free Report) closed at $816.08 in the latest trading session, marking a -1.33% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.42%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.38%.
The semiconductor equipment maker's stock has climbed by 0.74% in the past month, falling short of the Computer and Technology sector's gain of 1.78% and the S&P 500's gain of 2.06%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company's earnings per share (EPS) are projected to be $8, reflecting a 16.79% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.05 billion, showing a 16.3% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $35.20 per share and a revenue of $17.31 billion, signifying shifts of +17.57% and +16.13%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Lam Research. These revisions help to show the ever-changing nature of 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Lam Research is currently a Zacks Rank #3 (Hold).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 23.5. For comparison, its industry has an average Forward P/E of 27.67, which means Lam Research is trading at a discount to the group.
We can additionally observe that LRCX currently boasts a PEG ratio of 1.59. 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 2.25 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 100, placing it within the top 40% 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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Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
Lam Research (LRCX - Free Report) closed at $816.08 in the latest trading session, marking a -1.33% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.42%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.38%.
The semiconductor equipment maker's stock has climbed by 0.74% in the past month, falling short of the Computer and Technology sector's gain of 1.78% and the S&P 500's gain of 2.06%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company's earnings per share (EPS) are projected to be $8, reflecting a 16.79% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.05 billion, showing a 16.3% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $35.20 per share and a revenue of $17.31 billion, signifying shifts of +17.57% and +16.13%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Lam Research. These revisions help to show the ever-changing nature of 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Lam Research is currently a Zacks Rank #3 (Hold).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 23.5. For comparison, its industry has an average Forward P/E of 27.67, which means Lam Research is trading at a discount to the group.
We can additionally observe that LRCX currently boasts a PEG ratio of 1.59. 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 2.25 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 100, placing it within the top 40% 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.