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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 $608.76, moving -1.79% from the previous trading session. This move lagged the S&P 500's daily loss of 0.77%. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 2.23%.
Coming into today, shares of the semiconductor equipment maker had gained 2.95% in the past month. In that same time, the Computer and Technology sector gained 6.75%, while the S&P 500 gained 4.66%.
Wall Street will be looking for positivity from Lam Research as it approaches its next earnings report date. On that day, Lam Research is projected to report earnings of $5.03 per share, which would represent a year-over-year decline of 43.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.12 billion, down 32.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $33.19 per share and revenue of $17.34 billion. These totals would mark changes of +0.21% and +0.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Lam Research is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Lam Research has a Forward P/E ratio of 18.68 right now. For comparison, its industry has an average Forward P/E of 20.53, which means Lam Research is trading at a discount to the group.
It is also worth noting that LRCX currently has a PEG ratio of 7.3. 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 was holding an average PEG ratio of 3.52 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 115, putting it in the top 46% 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) Dips More Than Broader Markets: What You Should Know
Lam Research (LRCX - Free Report) closed the most recent trading day at $608.76, moving -1.79% from the previous trading session. This move lagged the S&P 500's daily loss of 0.77%. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 2.23%.
Coming into today, shares of the semiconductor equipment maker had gained 2.95% in the past month. In that same time, the Computer and Technology sector gained 6.75%, while the S&P 500 gained 4.66%.
Wall Street will be looking for positivity from Lam Research as it approaches its next earnings report date. On that day, Lam Research is projected to report earnings of $5.03 per share, which would represent a year-over-year decline of 43.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.12 billion, down 32.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $33.19 per share and revenue of $17.34 billion. These totals would mark changes of +0.21% and +0.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Lam Research is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Lam Research has a Forward P/E ratio of 18.68 right now. For comparison, its industry has an average Forward P/E of 20.53, which means Lam Research is trading at a discount to the group.
It is also worth noting that LRCX currently has a PEG ratio of 7.3. 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 was holding an average PEG ratio of 3.52 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 115, putting it in the top 46% 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.