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Lam Research (LRCX) Gains But Lags Market: What You Should Know
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In the latest trading session, Lam Research (LRCX - Free Report) closed at $705.96, marking a +0.94% move from the previous day. This change lagged the S&P 500's 0.96% gain on the day. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the semiconductor equipment maker had gained 13.96% in the past month. In that same time, the Computer and Technology sector lost 1.81%, while the S&P 500 lost 0.21%.
Lam Research will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lam Research to post earnings of $8.46 per share. This would mark year-over-year growth of 40.3%. Our most recent consensus estimate is calling for quarterly revenue of $4.4 billion, up 27.38% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $34.29 per share and revenue of $17.76 billion. These totals would mark changes of +25.88% and +21.44%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lam Research is currently a Zacks Rank #2 (Buy).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 20.39. This represents a premium compared to its industry's average Forward P/E of 20.19.
It is also worth noting that LRCX currently has a PEG ratio of 1.2. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
To follow LRCX in the coming trading sessions, be sure to utilize Zacks.com.
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Lam Research (LRCX) Gains But Lags Market: What You Should Know
In the latest trading session, Lam Research (LRCX - Free Report) closed at $705.96, marking a +0.94% move from the previous day. This change lagged the S&P 500's 0.96% gain on the day. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the semiconductor equipment maker had gained 13.96% in the past month. In that same time, the Computer and Technology sector lost 1.81%, while the S&P 500 lost 0.21%.
Lam Research will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lam Research to post earnings of $8.46 per share. This would mark year-over-year growth of 40.3%. Our most recent consensus estimate is calling for quarterly revenue of $4.4 billion, up 27.38% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $34.29 per share and revenue of $17.76 billion. These totals would mark changes of +25.88% and +21.44%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lam Research is currently a Zacks Rank #2 (Buy).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 20.39. This represents a premium compared to its industry's average Forward P/E of 20.19.
It is also worth noting that LRCX currently has a PEG ratio of 1.2. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
To follow LRCX in the coming trading sessions, be sure to utilize Zacks.com.