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Lam Research (LRCX) Dips More Than Broader Markets: What You Should Know
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Lam Research (LRCX - Free Report) closed the most recent trading day at $172.43, moving -1.25% from the previous trading session. This move lagged the S&P 500's daily loss of 0.28%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq lost 1.61%.
Prior to today's trading, shares of the semiconductor equipment maker had lost 13.64% over the past month. This has lagged the Computer and Technology sector's loss of 8.75% and the S&P 500's loss of 6.3% in that time.
Investors will be hoping for strength from LRCX as it approaches its next earnings release. On that day, LRCX is projected to report earnings of $3.40 per share, which would represent a year-over-year decline of 35.97%. Our most recent consensus estimate is calling for quarterly revenue of $2.35 billion, down 24.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.33 per share and revenue of $9.64 billion. These totals would mark changes of -19.81% and -12.97%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for LRCX. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LRCX is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that LRCX has a Forward P/E ratio of 12.18 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.
We can also see that LRCX currently has a PEG ratio of 1.02. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Lam Research (LRCX) Dips More Than Broader Markets: What You Should Know
Lam Research (LRCX - Free Report) closed the most recent trading day at $172.43, moving -1.25% from the previous trading session. This move lagged the S&P 500's daily loss of 0.28%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq lost 1.61%.
Prior to today's trading, shares of the semiconductor equipment maker had lost 13.64% over the past month. This has lagged the Computer and Technology sector's loss of 8.75% and the S&P 500's loss of 6.3% in that time.
Investors will be hoping for strength from LRCX as it approaches its next earnings release. On that day, LRCX is projected to report earnings of $3.40 per share, which would represent a year-over-year decline of 35.97%. Our most recent consensus estimate is calling for quarterly revenue of $2.35 billion, down 24.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.33 per share and revenue of $9.64 billion. These totals would mark changes of -19.81% and -12.97%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for LRCX. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LRCX is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that LRCX has a Forward P/E ratio of 12.18 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.
We can also see that LRCX currently has a PEG ratio of 1.02. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.