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Lam Research (LRCX) Rises Higher Than Market: Key Facts
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In the latest trading session, Lam Research (LRCX - Free Report) closed at $292.66, marking a +1.51% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.06%. Meanwhile, the Dow experienced a rise of 1.18%, and the technology-dominated Nasdaq saw an increase of 1.4%.
Prior to today's trading, shares of the semiconductor equipment maker had lost 6.21% lagged the Computer and Technology sector's gain of 3.99% and the S&P 500's gain of 2.46%.
Investors will be eagerly watching for the performance of Lam Research in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.15, showcasing a 70.63% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $8.1 billion, up 52.1% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.33 per share and a revenue of $34.48 billion, representing changes of +60.59% and +48.42%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lam Research. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1% increase. Lam Research is currently a Zacks Rank #2 (Buy).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 30.91. This represents a discount compared to its industry average Forward P/E of 33.57.
Also, we should mention that LRCX has a PEG ratio of 1.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Semiconductors was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Rises Higher Than Market: Key Facts
In the latest trading session, Lam Research (LRCX - Free Report) closed at $292.66, marking a +1.51% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.06%. Meanwhile, the Dow experienced a rise of 1.18%, and the technology-dominated Nasdaq saw an increase of 1.4%.
Prior to today's trading, shares of the semiconductor equipment maker had lost 6.21% lagged the Computer and Technology sector's gain of 3.99% and the S&P 500's gain of 2.46%.
Investors will be eagerly watching for the performance of Lam Research in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.15, showcasing a 70.63% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $8.1 billion, up 52.1% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.33 per share and a revenue of $34.48 billion, representing changes of +60.59% and +48.42%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lam Research. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1% increase. Lam Research is currently a Zacks Rank #2 (Buy).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 30.91. This represents a discount compared to its industry average Forward P/E of 33.57.
Also, we should mention that LRCX has a PEG ratio of 1.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Semiconductors was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.