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Here's Why Lam Research (LRCX) Fell More Than Broader Market
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Lam Research (LRCX - Free Report) closed at $80.61 in the latest trading session, marking a -1.14% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.96%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
The semiconductor equipment maker's stock has climbed by 11.12% in the past month, exceeding the Computer and Technology sector's gain of 7.35% and the S&P 500's gain of 4.3%.
Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. The company's earnings report is set to go public on October 23, 2024. The company is predicted to post an EPS of $0.73, indicating a 5.8% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.05 billion, indicating a 16.3% increase compared to the same quarter of the previous year.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $3.21 per share and revenue of $17.31 billion. These results would represent year-over-year changes of +7.36% and +16.13%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lam Research. These recent revisions tend to reflect the evolving nature of short-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 shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 8.9% lower. Currently, Lam Research is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Lam Research is presently trading at a Forward P/E ratio of 25.43. For comparison, its industry has an average Forward P/E of 28.44, which means Lam Research is trading at a discount to the group.
One should further note that LRCX currently holds a PEG ratio of 1.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. LRCX's industry had an average PEG ratio of 2.23 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why Lam Research (LRCX) Fell More Than Broader Market
Lam Research (LRCX - Free Report) closed at $80.61 in the latest trading session, marking a -1.14% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.96%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
The semiconductor equipment maker's stock has climbed by 11.12% in the past month, exceeding the Computer and Technology sector's gain of 7.35% and the S&P 500's gain of 4.3%.
Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. The company's earnings report is set to go public on October 23, 2024. The company is predicted to post an EPS of $0.73, indicating a 5.8% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.05 billion, indicating a 16.3% increase compared to the same quarter of the previous year.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $3.21 per share and revenue of $17.31 billion. These results would represent year-over-year changes of +7.36% and +16.13%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lam Research. These recent revisions tend to reflect the evolving nature of short-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 shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 8.9% lower. Currently, Lam Research is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Lam Research is presently trading at a Forward P/E ratio of 25.43. For comparison, its industry has an average Forward P/E of 28.44, which means Lam Research is trading at a discount to the group.
One should further note that LRCX currently holds a PEG ratio of 1.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. LRCX's industry had an average PEG ratio of 2.23 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.