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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 at $606.03 in the latest trading session, marking a -1.23% move from the prior day. This change lagged the S&P 500's daily loss of 0.86%.

Heading into today, shares of the semiconductor equipment maker had lost 3.23% over the past month, lagging the Computer and Technology sector's gain of 5.54% and the S&P 500's gain of 3.22% in that time.

LRCX will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2021. On that day, LRCX is projected to report earnings of $7.53 per share, which would represent year-over-year growth of 57.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4 billion, up 43.45% from the year-ago period.

Investors should also note any recent changes to analyst estimates for LRCX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. 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 18.93 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.11.

Meanwhile, LRCX's PEG ratio is currently 0.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LRCX's industry had an average PEG ratio of 1.15 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 73, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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