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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 $668.88, moving -1.16% from the previous trading session. This change lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.09%.
Coming into today, shares of the semiconductor equipment maker had lost 1.41% in the past month. In that same time, the Computer and Technology sector gained 0.07%, while the S&P 500 lost 1.27%.
Lam Research will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.07, down 41.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.41 billion, down 32.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.75 per share and revenue of $14.43 billion. These totals would mark changes of -21.71% and -17.22%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate has moved 1.03% higher within the past month. Lam Research is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Lam Research has a Forward P/E ratio of 25.3 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.75.
Meanwhile, LRCX's PEG ratio is currently 4.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 3.1 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 30, which puts it in the top 12% 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) Stock Sinks As Market Gains: What You Should Know
Lam Research (LRCX - Free Report) closed the most recent trading day at $668.88, moving -1.16% from the previous trading session. This change lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.09%.
Coming into today, shares of the semiconductor equipment maker had lost 1.41% in the past month. In that same time, the Computer and Technology sector gained 0.07%, while the S&P 500 lost 1.27%.
Lam Research will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.07, down 41.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.41 billion, down 32.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.75 per share and revenue of $14.43 billion. These totals would mark changes of -21.71% and -17.22%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate has moved 1.03% higher within the past month. Lam Research is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Lam Research has a Forward P/E ratio of 25.3 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.75.
Meanwhile, LRCX's PEG ratio is currently 4.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 3.1 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 30, which puts it in the top 12% 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.