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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 $149.15, demonstrating a +2.29% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.37%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.71%.

Shares of the semiconductor equipment maker have appreciated by 41.63% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.04%, and the S&P 500's gain of 4.26%.

Investors will be eagerly watching for the performance of Lam Research in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 22, 2025. The company's upcoming EPS is projected at $1.21, signifying a 40.70% increase compared to the same quarter of the previous year. 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.

LRCX's full-year Zacks Consensus Estimates are calling for earnings of $4.5 per share and revenue of $19.98 billion. These results would represent year-over-year changes of +8.7% and +8.4%, respectively.

Investors might also notice recent changes to analyst estimates for Lam Research. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Over the past month, there's been a 1.79% rise in the Zacks Consensus EPS estimate. Currently, Lam Research is carrying a Zacks Rank of #2 (Buy).

Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 32.44. For comparison, its industry has an average Forward P/E of 38.53, which means Lam Research is trading at a discount to the group.

It is also worth noting that LRCX currently has a PEG ratio of 1.78. 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. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 2.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 184, finds itself in the bottom 26% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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