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Lam Research (LRCX) Gains But Lags Market: What You Should Know
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Lam Research (LRCX - Free Report) closed the most recent trading day at $642.86, moving +0.39% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Heading into today, shares of the semiconductor equipment maker had gained 3.31% over the past month, lagging the Computer and Technology sector's gain of 3.32% and the S&P 500's gain of 4.67% in that time.
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 $5.03 per share. This would mark a year-over-year decline of 43.04%. Meanwhile, our latest consensus estimate is calling for revenue of $3.12 billion, down 32.73% from the prior-year quarter.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $33.19 per share and revenue of $17.34 billion. These results would represent year-over-year changes of +0.21% and +0.65%, respectively.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 currently a Zacks Rank #3 (Hold).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 19.3. This valuation marks a discount compared to its industry's average Forward P/E of 21.4.
It is also worth noting that LRCX currently has a PEG ratio of 7.54. 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 industry currently had an average PEG ratio of 3.66 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Lam Research (LRCX) Gains But Lags Market: What You Should Know
Lam Research (LRCX - Free Report) closed the most recent trading day at $642.86, moving +0.39% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Heading into today, shares of the semiconductor equipment maker had gained 3.31% over the past month, lagging the Computer and Technology sector's gain of 3.32% and the S&P 500's gain of 4.67% in that time.
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 $5.03 per share. This would mark a year-over-year decline of 43.04%. Meanwhile, our latest consensus estimate is calling for revenue of $3.12 billion, down 32.73% from the prior-year quarter.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $33.19 per share and revenue of $17.34 billion. These results would represent year-over-year changes of +0.21% and +0.65%, respectively.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 currently a Zacks Rank #3 (Hold).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 19.3. This valuation marks a discount compared to its industry's average Forward P/E of 21.4.
It is also worth noting that LRCX currently has a PEG ratio of 7.54. 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 industry currently had an average PEG ratio of 3.66 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.