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Lam Research (LRCX) Surpasses Market Returns: Some Facts Worth Knowing
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Lam Research (LRCX - Free Report) ended the recent trading session at $781.01, demonstrating a +1.44% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.59% gain on the day. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Prior to today's trading, shares of the semiconductor equipment maker had gained 7.06% over the past month. This has outpaced the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16% in that time.
Market participants will be closely following the financial results of Lam Research in its upcoming release. It is anticipated that the company will report an EPS of $7.05, marking a 34.17% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.71 billion, indicating a 29.72% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.56 per share and a revenue of $14.62 billion, signifying shifts of -19.34% and -16.13%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lam Research. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.33% decrease. As of now, Lam Research holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 27.93. This represents a premium compared to its industry's average Forward P/E of 25.4.
It's also important to note that LRCX currently trades at a PEG ratio of 4.75. 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. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 3.76.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Lam Research (LRCX) Surpasses Market Returns: Some Facts Worth Knowing
Lam Research (LRCX - Free Report) ended the recent trading session at $781.01, demonstrating a +1.44% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.59% gain on the day. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Prior to today's trading, shares of the semiconductor equipment maker had gained 7.06% over the past month. This has outpaced the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16% in that time.
Market participants will be closely following the financial results of Lam Research in its upcoming release. It is anticipated that the company will report an EPS of $7.05, marking a 34.17% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.71 billion, indicating a 29.72% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.56 per share and a revenue of $14.62 billion, signifying shifts of -19.34% and -16.13%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lam Research. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.33% decrease. As of now, Lam Research holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 27.93. This represents a premium compared to its industry's average Forward P/E of 25.4.
It's also important to note that LRCX currently trades at a PEG ratio of 4.75. 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. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 3.76.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.