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Lam Research (LRCX) Stock Moves -0.03%: What You Should Know

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Lam Research (LRCX - Free Report) ended the recent trading session at $77.81, demonstrating a -0.03% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.39% for the day. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw a decrease of 0.32%.

Shares of the semiconductor equipment maker witnessed a gain of 10.29% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.63% and the S&P 500's gain of 3.6%.

The investment community will be paying close attention to the earnings performance of Lam Research in its upcoming release. The company is predicted to post an EPS of $0.87, indicating a 16% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.31 billion, indicating a 14.61% increase compared to the same quarter of the previous year.

LRCX's full-year Zacks Consensus Estimates are calling for earnings of $3.50 per share and revenue of $17.23 billion. These results would represent year-over-year changes of +17.06% and +15.6%, respectively.

It is also important to note the recent changes to analyst estimates for Lam Research. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.45% lower. At present, Lam Research boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Lam Research is currently exchanging hands at a Forward P/E ratio of 22.21. This valuation marks a discount compared to its industry's average Forward P/E of 39.3.

It's also important to note that LRCX currently trades at a PEG ratio of 1.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 2.27.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 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.

To follow LRCX in the coming trading sessions, be sure to utilize Zacks.com.


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