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Lam Research (LRCX) Registers a Bigger Fall Than the Market: Important Facts to Note
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Lam Research (LRCX - Free Report) closed at $371.33 in the latest trading session, marking a -9.33% move from the prior day. This change lagged the S&P 500's daily loss of 1.44%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 2.22%.
Heading into today, shares of the semiconductor equipment maker had gained 34.12% over the past month, outpacing the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
Market participants will be closely following the financial results of Lam Research in its upcoming release. The company is expected to report EPS of $1.65, up 24.06% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $6.65 billion, indicating a 28.67% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.7 per share and a revenue of $23.11 billion, demonstrating changes of +37.68% and +25.35%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. As of now, Lam Research holds a Zacks Rank of #2 (Buy).
Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 71.84. For comparison, its industry has an average Forward P/E of 56.17, which means Lam Research is trading at a premium to the group.
We can additionally observe that LRCX currently boasts a PEG ratio of 3.37. 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 of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 2.29.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Lam Research (LRCX) Registers a Bigger Fall Than the Market: Important Facts to Note
Lam Research (LRCX - Free Report) closed at $371.33 in the latest trading session, marking a -9.33% move from the prior day. This change lagged the S&P 500's daily loss of 1.44%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 2.22%.
Heading into today, shares of the semiconductor equipment maker had gained 34.12% over the past month, outpacing the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
Market participants will be closely following the financial results of Lam Research in its upcoming release. The company is expected to report EPS of $1.65, up 24.06% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $6.65 billion, indicating a 28.67% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.7 per share and a revenue of $23.11 billion, demonstrating changes of +37.68% and +25.35%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. As of now, Lam Research holds a Zacks Rank of #2 (Buy).
Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 71.84. For comparison, its industry has an average Forward P/E of 56.17, which means Lam Research is trading at a premium to the group.
We can additionally observe that LRCX currently boasts a PEG ratio of 3.37. 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 of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 2.29.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.