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Lam Research (LRCX) Outperforms Broader Market: What You Need to Know
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In the latest close session, Lam Research (LRCX - Free Report) was up +2.73% at $315.56. This move outpaced the S&P 500's daily gain of 0.51%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 0.48%.
The stock of semiconductor equipment maker has fallen by 3.58% in the past month, lagging the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 0.74%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.17, reflecting a 72.22% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.12 billion, showing a 52.42% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.32 per share and revenue of $34.41 billion, which would represent changes of +60.41% and +48.1%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Lam Research currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 32.94. This signifies a discount in comparison to the average Forward P/E of 36.49 for its industry.
We can additionally observe that LRCX currently boasts a PEG ratio of 1.22. 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 1.22 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 54, finds itself in the top 22% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Lam Research (LRCX) Outperforms Broader Market: What You Need to Know
In the latest close session, Lam Research (LRCX - Free Report) was up +2.73% at $315.56. This move outpaced the S&P 500's daily gain of 0.51%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 0.48%.
The stock of semiconductor equipment maker has fallen by 3.58% in the past month, lagging the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 0.74%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.17, reflecting a 72.22% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.12 billion, showing a 52.42% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.32 per share and revenue of $34.41 billion, which would represent changes of +60.41% and +48.1%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Lam Research currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 32.94. This signifies a discount in comparison to the average Forward P/E of 36.49 for its industry.
We can additionally observe that LRCX currently boasts a PEG ratio of 1.22. 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 1.22 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 54, finds itself in the top 22% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.