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Why the Market Dipped But Lam Research (LRCX) Gained Today
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In the latest trading session, Lam Research (LRCX - Free Report) closed at $238.84, marking a +2.37% move from the previous day. This move outpaced the S&P 500's daily loss of 0.37%. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq decreased by 0.84%.
The stock of semiconductor equipment maker has fallen by 3.7% in the past month, lagging the Computer and Technology sector's loss of 2.83% and synchronizing with the S&P 500.
Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.33, showcasing a 27.88% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $5.74 billion, indicating a 21.71% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.24 per share and a revenue of $22.31 billion, demonstrating changes of +26.57% and +20.99%, respectively, from the preceding 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained unchanged. Lam Research is currently a Zacks Rank #2 (Buy).
In terms of valuation, Lam Research is presently being traded at a Forward P/E ratio of 44.52. For comparison, its industry has an average Forward P/E of 33.8, which means Lam Research is trading at a premium to the group.
Meanwhile, LRCX's PEG ratio is currently 2.51. 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. The Electronics - Semiconductors industry had an average PEG ratio of 1.97 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why the Market Dipped But Lam Research (LRCX) Gained Today
In the latest trading session, Lam Research (LRCX - Free Report) closed at $238.84, marking a +2.37% move from the previous day. This move outpaced the S&P 500's daily loss of 0.37%. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq decreased by 0.84%.
The stock of semiconductor equipment maker has fallen by 3.7% in the past month, lagging the Computer and Technology sector's loss of 2.83% and synchronizing with the S&P 500.
Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.33, showcasing a 27.88% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $5.74 billion, indicating a 21.71% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.24 per share and a revenue of $22.31 billion, demonstrating changes of +26.57% and +20.99%, respectively, from the preceding 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained unchanged. Lam Research is currently a Zacks Rank #2 (Buy).
In terms of valuation, Lam Research is presently being traded at a Forward P/E ratio of 44.52. For comparison, its industry has an average Forward P/E of 33.8, which means Lam Research is trading at a premium to the group.
Meanwhile, LRCX's PEG ratio is currently 2.51. 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. The Electronics - Semiconductors industry had an average PEG ratio of 1.97 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.