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Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
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Lam Research (LRCX - Free Report) closed the most recent trading day at $507.36, moving -1.16% from the previous trading session. This change lagged the S&P 500's 1.3% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.
Prior to today's trading, shares of the semiconductor equipment maker had gained 3.56% over the past month. This has outpaced the Computer and Technology sector's gain of 2.79% and the S&P 500's loss of 2.95% 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 $6.53 per share. This would mark a year-over-year decline of 11.76%. Meanwhile, our latest consensus estimate is calling for revenue of $3.82 billion, down 5.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $33.30 per share and revenue of $17.64 billion. These totals would mark changes of +0.54% and +2.41%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Lam Research. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lam Research is currently a Zacks Rank #3 (Hold).
Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 15.41. This represents a discount compared to its industry's average Forward P/E of 19.02.
We can also see that LRCX currently has a PEG ratio of 8.86. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.16 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 225, putting it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
Lam Research (LRCX - Free Report) closed the most recent trading day at $507.36, moving -1.16% from the previous trading session. This change lagged the S&P 500's 1.3% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.
Prior to today's trading, shares of the semiconductor equipment maker had gained 3.56% over the past month. This has outpaced the Computer and Technology sector's gain of 2.79% and the S&P 500's loss of 2.95% 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 $6.53 per share. This would mark a year-over-year decline of 11.76%. Meanwhile, our latest consensus estimate is calling for revenue of $3.82 billion, down 5.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $33.30 per share and revenue of $17.64 billion. These totals would mark changes of +0.54% and +2.41%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Lam Research. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lam Research is currently a Zacks Rank #3 (Hold).
Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 15.41. This represents a discount compared to its industry's average Forward P/E of 19.02.
We can also see that LRCX currently has a PEG ratio of 8.86. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.16 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 225, putting it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.