Lam Research (
LRCX Quick Quote LRCX - Free Report) closed at $380.56 in the latest trading session, marking a -1.62% move from the prior day. This change was narrower than the S&P 500's 1.72% loss on the day. At the same time, the Dow lost 1.62%, and the tech-heavy Nasdaq gained 0.09%.
Heading into today, shares of the semiconductor equipment maker had lost 19.11% over the past month, lagging the Computer and Technology sector's loss of 11.99% and the S&P 500's loss of 9.09% in that time.
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 $9.53 per share. This would mark 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $37.31 per share and revenue of $19.19 billion. These totals would mark changes of +12.65% and +11.39%, respectively, from last year.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.77% lower. Lam Research is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 10.37. Its industry sports an average Forward P/E of 12.72, so we one might conclude that Lam Research is trading at a discount comparatively.
Investors should also note that LRCX has a PEG ratio of 0.88 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. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.