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Lam Research (LRCX) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Lam Research (LRCX - Free Report) closed at $101.77, marking a +1.1% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.

Heading into today, shares of the semiconductor equipment maker had gained 11.24% over the past month, outpacing the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35%.

The upcoming earnings release of Lam Research will be of great interest to investors. The company's earnings report is expected on July 30, 2025. It is anticipated that the company will report an EPS of $1.2, marking a 48.15% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.99 billion, up 28.89% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4 per share and revenue of $18.22 billion, which would represent changes of +33.78% and 0%, respectively, from the prior year.

Any recent changes to analyst estimates for Lam Research should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. At present, Lam Research boasts a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Lam Research has a Forward P/E ratio of 25.18 right now. Its industry sports an average Forward P/E of 27.61, so one might conclude that Lam Research is trading at a discount comparatively.

Also, we should mention that LRCX has a PEG ratio of 1.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.61.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons 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.

To follow LRCX in the coming trading sessions, be sure to utilize Zacks.com.


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