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Why Lam Research (LRCX) Outpaced the Stock Market Today
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In the latest trading session, Lam Research (LRCX - Free Report) closed at $105.07, marking a +2.06% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.21% for the day. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq increased by 0.45%.
Shares of the semiconductor equipment maker have appreciated by 1.18% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.48%, and the S&P 500's gain of 3.07%.
The upcoming earnings release of Lam Research will be of great interest to investors. On that day, Lam Research is projected to report earnings of $1.21 per share, which would represent year-over-year growth of 40.7%. At the same time, our most recent consensus estimate is projecting a revenue of $5.22 billion, reflecting a 25.22% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.42 per share and revenue of $19.66 billion. These totals would mark changes of +6.76% and +6.66%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.82% increase. Right now, Lam Research possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 23.31. This signifies a discount in comparison to the average Forward P/E of 29.52 for its industry.
One should further note that LRCX currently holds a PEG ratio of 1.32. 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 Electronics - Semiconductors industry had an average PEG ratio of 1.92.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 196, placing it within the bottom 21% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why Lam Research (LRCX) Outpaced the Stock Market Today
In the latest trading session, Lam Research (LRCX - Free Report) closed at $105.07, marking a +2.06% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.21% for the day. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq increased by 0.45%.
Shares of the semiconductor equipment maker have appreciated by 1.18% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.48%, and the S&P 500's gain of 3.07%.
The upcoming earnings release of Lam Research will be of great interest to investors. On that day, Lam Research is projected to report earnings of $1.21 per share, which would represent year-over-year growth of 40.7%. At the same time, our most recent consensus estimate is projecting a revenue of $5.22 billion, reflecting a 25.22% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.42 per share and revenue of $19.66 billion. These totals would mark changes of +6.76% and +6.66%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.82% increase. Right now, Lam Research possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 23.31. This signifies a discount in comparison to the average Forward P/E of 29.52 for its industry.
One should further note that LRCX currently holds a PEG ratio of 1.32. 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 Electronics - Semiconductors industry had an average PEG ratio of 1.92.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 196, placing it within the bottom 21% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.