Back to top

Image: Bigstock

Lam Research (LRCX) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Read MoreHide Full Article

Lam Research (LRCX - Free Report) ended the recent trading session at $214.33, demonstrating a -2.75% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.19%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Heading into today, shares of the semiconductor equipment maker had gained 34.15% over the past month, outpacing the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.26%.

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 January 28, 2026. The company is forecasted to report an EPS of $1.16, showcasing a 27.47% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.22 billion, indicating a 19.23% increase compared to the same quarter of the previous year.

LRCX's full-year Zacks Consensus Estimates are calling for earnings of $4.8 per share and revenue of $21.04 billion. These results would represent year-over-year changes of +15.94% and +14.11%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lam Research. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Lam Research is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, Lam Research is holding a Forward P/E ratio of 45.87. This valuation marks a premium compared to its industry average Forward P/E of 35.72.

Investors should also note that LRCX has a PEG ratio of 2.54 right now. 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. 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. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% of all 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lam Research Corporation (LRCX) - free report >>

Published in