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Lam Research (LRCX) Beats Stock Market Upswing: What Investors Need to Know
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In the latest trading session, Lam Research (LRCX - Free Report) closed at $175.27, marking a +1.74% move from the previous day. This change outpaced the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq added 0.52%.
Shares of the semiconductor equipment maker have appreciated by 20.76% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.98%, and the S&P 500's gain of 3%.
The upcoming earnings release of Lam Research will be of great interest to investors. In that report, analysts expect Lam Research to post earnings of $1.15 per share. This would mark year-over-year growth of 26.37%. Alongside, our most recent consensus estimate is anticipating revenue of $5.22 billion, indicating a 19.23% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.79 per share and a revenue of $21.04 billion, demonstrating changes of +15.7% and +14.11%, respectively, from the preceding 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Lam Research is currently a Zacks Rank #2 (Buy).
Looking at valuation, Lam Research is presently trading at a Forward P/E ratio of 35.97. For comparison, its industry has an average Forward P/E of 34.78, which means Lam Research is trading at a premium to the group.
One should further note that LRCX currently holds a PEG ratio of 1.77. 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. LRCX's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
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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Lam Research (LRCX) Beats Stock Market Upswing: What Investors Need to Know
In the latest trading session, Lam Research (LRCX - Free Report) closed at $175.27, marking a +1.74% move from the previous day. This change outpaced the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq added 0.52%.
Shares of the semiconductor equipment maker have appreciated by 20.76% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.98%, and the S&P 500's gain of 3%.
The upcoming earnings release of Lam Research will be of great interest to investors. In that report, analysts expect Lam Research to post earnings of $1.15 per share. This would mark year-over-year growth of 26.37%. Alongside, our most recent consensus estimate is anticipating revenue of $5.22 billion, indicating a 19.23% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.79 per share and a revenue of $21.04 billion, demonstrating changes of +15.7% and +14.11%, respectively, from the preceding 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Lam Research is currently a Zacks Rank #2 (Buy).
Looking at valuation, Lam Research is presently trading at a Forward P/E ratio of 35.97. For comparison, its industry has an average Forward P/E of 34.78, which means Lam Research is trading at a premium to the group.
One should further note that LRCX currently holds a PEG ratio of 1.77. 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. LRCX's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
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.