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Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
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Lam Research (LRCX - Free Report) closed the most recent trading day at $701.96, moving -0.06% from the previous trading session. This change lagged the S&P 500's 0.18% gain on the day. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 0.02%.
Coming into today, shares of the semiconductor equipment maker had gained 1.3% in the past month. In that same time, the Computer and Technology sector lost 1.62%, while the S&P 500 lost 1.63%.
Investors will be hoping for strength from Lam Research as it approaches its next earnings release. On that day, Lam Research is projected to report earnings of $6.07 per share, which would represent a year-over-year decline of 41.75%. Our most recent consensus estimate is calling for quarterly revenue of $3.41 billion, down 32.79% from the year-ago period.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $26.75 per share and revenue of $14.43 billion. These results would represent year-over-year changes of -21.71% and -17.22%, respectively.
It is also important to note the recent changes to analyst estimates for Lam Research. Recent revisions tend to reflect the latest 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.03% higher. Lam Research is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 25.66. This represents a premium compared to its industry's average Forward P/E of 25.23.
It is also worth noting that LRCX currently has a PEG ratio of 4.15. 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 3.18 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 21, putting it in the top 9% 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.
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) Stock Sinks As Market Gains: What You Should Know
Lam Research (LRCX - Free Report) closed the most recent trading day at $701.96, moving -0.06% from the previous trading session. This change lagged the S&P 500's 0.18% gain on the day. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 0.02%.
Coming into today, shares of the semiconductor equipment maker had gained 1.3% in the past month. In that same time, the Computer and Technology sector lost 1.62%, while the S&P 500 lost 1.63%.
Investors will be hoping for strength from Lam Research as it approaches its next earnings release. On that day, Lam Research is projected to report earnings of $6.07 per share, which would represent a year-over-year decline of 41.75%. Our most recent consensus estimate is calling for quarterly revenue of $3.41 billion, down 32.79% from the year-ago period.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $26.75 per share and revenue of $14.43 billion. These results would represent year-over-year changes of -21.71% and -17.22%, respectively.
It is also important to note the recent changes to analyst estimates for Lam Research. Recent revisions tend to reflect the latest 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.03% higher. Lam Research is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 25.66. This represents a premium compared to its industry's average Forward P/E of 25.23.
It is also worth noting that LRCX currently has a PEG ratio of 4.15. 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 3.18 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 21, putting it in the top 9% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.