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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 $409.22, marking a -1.02% move from the previous day. This change lagged the S&P 500's 0.72% loss on the day. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the semiconductor equipment maker had lost 17.83% in the past month. In that same time, the Computer and Technology sector lost 14.29%, while the S&P 500 lost 9.06%.
Lam Research will be looking to display strength as it nears its next earnings release. On that day, Lam Research is projected to report earnings of $9.53 per share, which would represent year-over-year growth of 14%. Meanwhile, our latest consensus estimate is calling for revenue of $4.92 billion, up 14.22% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $37.31 per share and revenue of $19.19 billion, which would represent changes of +12.65% and +11.39%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lam Research. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.77% lower within the past month. Lam Research is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Lam Research currently has a Forward P/E ratio of 11.08. For comparison, its industry has an average Forward P/E of 13.25, which means Lam Research is trading at a discount to the group.
Meanwhile, LRCX's PEG ratio is currently 0.94. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.53 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 99, putting it in the top 40% 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.
You can find more information on all of these metrics, and much 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 $409.22, marking a -1.02% move from the previous day. This change lagged the S&P 500's 0.72% loss on the day. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the semiconductor equipment maker had lost 17.83% in the past month. In that same time, the Computer and Technology sector lost 14.29%, while the S&P 500 lost 9.06%.
Lam Research will be looking to display strength as it nears its next earnings release. On that day, Lam Research is projected to report earnings of $9.53 per share, which would represent year-over-year growth of 14%. Meanwhile, our latest consensus estimate is calling for revenue of $4.92 billion, up 14.22% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $37.31 per share and revenue of $19.19 billion, which would represent changes of +12.65% and +11.39%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lam Research. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.77% lower within the past month. Lam Research is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Lam Research currently has a Forward P/E ratio of 11.08. For comparison, its industry has an average Forward P/E of 13.25, which means Lam Research is trading at a discount to the group.
Meanwhile, LRCX's PEG ratio is currently 0.94. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.53 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 99, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.