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Why Lam Research (LRCX) Dipped More Than Broader Market Today
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Lam Research (LRCX - Free Report) ended the recent trading session at $160.52, demonstrating a -4.85% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 1.07%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 1.69%.
Shares of the semiconductor equipment maker have appreciated by 10.04% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.6%, and the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Lam Research in its forthcoming earnings report. The company's upcoming EPS is projected at $1.15, signifying a 26.37% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $5.22 billion, indicating a 19.23% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.79 per share and revenue of $21.04 billion, which would represent changes of +15.7% and +14.11%, respectively, from the prior year.
Investors should also note any recent changes 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 business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.77% higher. Lam Research is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Lam Research currently has a Forward P/E ratio of 35.22. This indicates a discount in contrast to its industry's Forward P/E of 37.08.
Also, we should mention that LRCX has a PEG ratio of 1.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 2.04.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Why Lam Research (LRCX) Dipped More Than Broader Market Today
Lam Research (LRCX - Free Report) ended the recent trading session at $160.52, demonstrating a -4.85% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 1.07%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 1.69%.
Shares of the semiconductor equipment maker have appreciated by 10.04% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.6%, and the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Lam Research in its forthcoming earnings report. The company's upcoming EPS is projected at $1.15, signifying a 26.37% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $5.22 billion, indicating a 19.23% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.79 per share and revenue of $21.04 billion, which would represent changes of +15.7% and +14.11%, respectively, from the prior year.
Investors should also note any recent changes 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 business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.77% higher. Lam Research is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Lam Research currently has a Forward P/E ratio of 35.22. This indicates a discount in contrast to its industry's Forward P/E of 37.08.
Also, we should mention that LRCX has a PEG ratio of 1.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 2.04.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.