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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 the most recent trading day at $417.06, moving -1.28% from the previous trading session. This change lagged the S&P 500's daily loss of 1.17%. Elsewhere, the Dow lost 1.02%, while the tech-heavy Nasdaq lost 2.45%.

Coming into today, shares of the semiconductor equipment maker had lost 4.91% in the past month. In that same time, the Computer and Technology sector lost 8.27%, while the S&P 500 lost 5.25%.

Investors will be hoping for strength from Lam Research as it approaches its next earnings release. In that report, analysts expect Lam Research to post earnings of $9.96 per share. This would mark year-over-year growth of 16.76%. Our most recent consensus estimate is calling for quarterly revenue of $5.08 billion, up 20.25% from the year-ago period.

LRCX's full-year Zacks Consensus Estimates are calling for earnings of $34.61 per share and revenue of $18.13 billion. These results would represent year-over-year changes of +4.5% and +5.22%, respectively.

Investors might also notice recent changes to analyst estimates for Lam Research. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.06% lower within the past month. Lam Research is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Lam Research is holding a Forward P/E ratio of 12.21. This valuation marks a discount compared to its industry's average Forward P/E of 15.12.

It is also worth noting that LRCX currently has a PEG ratio of 1.72. 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. LRCX's industry had an average PEG ratio of 1.72 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 47, putting it in the top 19% 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

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