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Why Lam Research (LRCX) Outpaced the Stock Market Today
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Lam Research (LRCX - Free Report) ended the recent trading session at $784.08, demonstrating a +1.41% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.15%.
Heading into today, shares of the semiconductor equipment maker had lost 8.75% over the past month, lagging the Computer and Technology sector's loss of 0.02% and the S&P 500's gain of 2% in that time.
The investment community will be closely monitoring the performance of Lam Research in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $8, reflecting a 16.79% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.05 billion, indicating a 16.3% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $35.20 per share and a revenue of $17.31 billion, representing changes of +17.57% and +16.13%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Lam Research holds a Zacks Rank of #3 (Hold).
Looking at valuation, Lam Research is presently trading at a Forward P/E ratio of 21.97. For comparison, its industry has an average Forward P/E of 26.46, which means Lam Research is trading at a discount to the group.
One should further note that LRCX currently holds a PEG ratio of 1.49. 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. LRCX's industry had an average PEG ratio of 2.12 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 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why Lam Research (LRCX) Outpaced the Stock Market Today
Lam Research (LRCX - Free Report) ended the recent trading session at $784.08, demonstrating a +1.41% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.15%.
Heading into today, shares of the semiconductor equipment maker had lost 8.75% over the past month, lagging the Computer and Technology sector's loss of 0.02% and the S&P 500's gain of 2% in that time.
The investment community will be closely monitoring the performance of Lam Research in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $8, reflecting a 16.79% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.05 billion, indicating a 16.3% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $35.20 per share and a revenue of $17.31 billion, representing changes of +17.57% and +16.13%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Lam Research holds a Zacks Rank of #3 (Hold).
Looking at valuation, Lam Research is presently trading at a Forward P/E ratio of 21.97. For comparison, its industry has an average Forward P/E of 26.46, which means Lam Research is trading at a discount to the group.
One should further note that LRCX currently holds a PEG ratio of 1.49. 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. LRCX's industry had an average PEG ratio of 2.12 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 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.