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Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Lam Research (LRCX - Free Report) closed at $495.77, marking a -1.25% move from the previous day. This move lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the semiconductor equipment maker had gained 4.9% in the past month. In that same time, the Computer and Technology sector gained 8.4%, while the S&P 500 gained 0.25%.
Wall Street will be looking for positivity from Lam Research as it approaches its next earnings report date. The company is expected to report EPS of $6.53, down 11.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.82 billion, down 5.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $33.30 per share and revenue of $17.64 billion, which would represent changes of +0.54% and +2.41%, respectively, from the prior year.
Any recent changes to analyst estimates for Lam Research should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 remained stagnant within the past month. Lam Research currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 15.08. This represents a discount compared to its industry's average Forward P/E of 18.83.
Meanwhile, LRCX's PEG ratio is currently 8.66. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.05 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 226, which puts it in the bottom 11% 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.
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Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Lam Research (LRCX - Free Report) closed at $495.77, marking a -1.25% move from the previous day. This move lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the semiconductor equipment maker had gained 4.9% in the past month. In that same time, the Computer and Technology sector gained 8.4%, while the S&P 500 gained 0.25%.
Wall Street will be looking for positivity from Lam Research as it approaches its next earnings report date. The company is expected to report EPS of $6.53, down 11.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.82 billion, down 5.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $33.30 per share and revenue of $17.64 billion, which would represent changes of +0.54% and +2.41%, respectively, from the prior year.
Any recent changes to analyst estimates for Lam Research should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 remained stagnant within the past month. Lam Research currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 15.08. This represents a discount compared to its industry's average Forward P/E of 18.83.
Meanwhile, LRCX's PEG ratio is currently 8.66. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.05 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 226, which puts it in the bottom 11% 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.