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Lam Research (LRCX) Gains But Lags Market: What You Should Know
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In the latest trading session, Lam Research (LRCX - Free Report) closed at $622.60, marking a +0.51% move from the previous day. The stock lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 11.47%.
Coming into today, shares of the semiconductor equipment maker had lost 0.98% in the past month. In that same time, the Computer and Technology sector gained 2.44%, while the S&P 500 gained 3.34%.
Investors will be hoping for strength from Lam Research as it approaches its next earnings release, which is expected to be July 26, 2023. The company is expected to report EPS of $5.03, down 43.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.12 billion, down 32.73% from the year-ago period.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.06% lower. Lam Research is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 25.21. Its industry sports an average Forward P/E of 24.15, so we one might conclude that Lam Research is trading at a premium comparatively.
Meanwhile, LRCX's PEG ratio is currently 9.85. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.49 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 64, putting it in the top 26% 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) Gains But Lags Market: What You Should Know
In the latest trading session, Lam Research (LRCX - Free Report) closed at $622.60, marking a +0.51% move from the previous day. The stock lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 11.47%.
Coming into today, shares of the semiconductor equipment maker had lost 0.98% in the past month. In that same time, the Computer and Technology sector gained 2.44%, while the S&P 500 gained 3.34%.
Investors will be hoping for strength from Lam Research as it approaches its next earnings release, which is expected to be July 26, 2023. The company is expected to report EPS of $5.03, down 43.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.12 billion, down 32.73% from the year-ago period.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.06% lower. Lam Research is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 25.21. Its industry sports an average Forward P/E of 24.15, so we one might conclude that Lam Research is trading at a premium comparatively.
Meanwhile, LRCX's PEG ratio is currently 9.85. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.49 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 64, putting it in the top 26% 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.