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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 at $621 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 2.71%.
Coming into today, shares of the semiconductor equipment maker had gained 2.91% in the past month. In that same time, the Computer and Technology sector gained 2.73%, while the S&P 500 gained 4.16%.
Lam Research will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2023. 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.
Investors should also note any recent changes to analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Lam Research is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 25.58. For comparison, its industry has an average Forward P/E of 24.17, which means Lam Research is trading at a premium to the group.
It is also worth noting that LRCX currently has a PEG ratio of 9.99. 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. LRCX's industry had an average PEG ratio of 3.61 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 110, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much 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 at $621 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 2.71%.
Coming into today, shares of the semiconductor equipment maker had gained 2.91% in the past month. In that same time, the Computer and Technology sector gained 2.73%, while the S&P 500 gained 4.16%.
Lam Research will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2023. 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.
Investors should also note any recent changes to analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Lam Research is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 25.58. For comparison, its industry has an average Forward P/E of 24.17, which means Lam Research is trading at a premium to the group.
It is also worth noting that LRCX currently has a PEG ratio of 9.99. 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. LRCX's industry had an average PEG ratio of 3.61 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 110, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.