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Lam Research (LRCX) Rises But Trails Market: What Investors Should Know
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Lam Research (LRCX - Free Report) closed at $715.92 in the latest trading session, marking a +0.27% move from the prior day. This change lagged the S&P 500's 0.38% gain on the day. Elsewhere, the Dow saw an upswing of 1.47%, while the tech-heavy Nasdaq depreciated by 0.23%.
The semiconductor equipment maker's stock has climbed by 17.69% in the past month, exceeding the Computer and Technology sector's gain of 14.04% and the S&P 500's gain of 10.72%.
Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. The company is predicted to post an EPS of $7.05, indicating a 34.17% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.71 billion, showing a 29.72% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.65 per share and a revenue of $14.66 billion, signifying shifts of -19.08% and -15.9%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.59% higher within the past month. At present, Lam Research boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Lam Research is presently trading at a Forward P/E ratio of 25.82. This expresses a premium compared to the average Forward P/E of 23.1 of its industry.
Meanwhile, LRCX's PEG ratio is currently 4.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.04 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Rises But Trails Market: What Investors Should Know
Lam Research (LRCX - Free Report) closed at $715.92 in the latest trading session, marking a +0.27% move from the prior day. This change lagged the S&P 500's 0.38% gain on the day. Elsewhere, the Dow saw an upswing of 1.47%, while the tech-heavy Nasdaq depreciated by 0.23%.
The semiconductor equipment maker's stock has climbed by 17.69% in the past month, exceeding the Computer and Technology sector's gain of 14.04% and the S&P 500's gain of 10.72%.
Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. The company is predicted to post an EPS of $7.05, indicating a 34.17% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.71 billion, showing a 29.72% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.65 per share and a revenue of $14.66 billion, signifying shifts of -19.08% and -15.9%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.59% higher within the past month. At present, Lam Research boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Lam Research is presently trading at a Forward P/E ratio of 25.82. This expresses a premium compared to the average Forward P/E of 23.1 of its industry.
Meanwhile, LRCX's PEG ratio is currently 4.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.04 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.