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Lam Research (LRCX) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Lam Research (LRCX - Free Report) closed at $470.99, marking a -0.57% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Coming into today, shares of the semiconductor equipment maker had gained 7.97% in the past month. In that same time, the Computer and Technology sector gained 3.75%, while the S&P 500 gained 4.01%.
Lam Research will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2023. On that day, Lam Research is projected to report earnings of $9.96 per share, which would represent year-over-year growth of 16.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.08 billion, up 20.25% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $34.60 per share and revenue of $18.14 billion. These totals would mark changes of +4.47% and +5.28%, respectively, from last year.
Investors might also notice recent changes to analyst estimates 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. Lam Research is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 13.69. This represents a discount compared to its industry's average Forward P/E of 17.07.
Investors should also note that LRCX has a PEG ratio of 1.93 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.93 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 17, putting it in the top 7% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lam Research (LRCX) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Lam Research (LRCX - Free Report) closed at $470.99, marking a -0.57% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Coming into today, shares of the semiconductor equipment maker had gained 7.97% in the past month. In that same time, the Computer and Technology sector gained 3.75%, while the S&P 500 gained 4.01%.
Lam Research will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2023. On that day, Lam Research is projected to report earnings of $9.96 per share, which would represent year-over-year growth of 16.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.08 billion, up 20.25% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $34.60 per share and revenue of $18.14 billion. These totals would mark changes of +4.47% and +5.28%, respectively, from last year.
Investors might also notice recent changes to analyst estimates 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. Lam Research is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 13.69. This represents a discount compared to its industry's average Forward P/E of 17.07.
Investors should also note that LRCX has a PEG ratio of 1.93 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.93 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 17, putting it in the top 7% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.