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Lam Research (LRCX) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Lam Research (LRCX - Free Report) closed at $320.59, marking a -2.71% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.47%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 1.25%.
Heading into today, shares of the semiconductor equipment maker had gained 4.33% over the past month, lagging the Computer and Technology sector's gain of 6.08% and outpacing the S&P 500's gain of 1.15%.
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 October 21, 2026. In that report, analysts expect Lam Research to post earnings of $2.17 per share. This would mark year-over-year growth of 72.22%. In the meantime, our current consensus estimate forecasts the revenue to be $8.12 billion, indicating a 52.42% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.34 per share and revenue of $34.46 billion. These totals would mark changes of +60.76% and +48.34%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.15% upward. As of now, Lam Research holds a Zacks Rank of #2 (Buy).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 35.29. This expresses a discount compared to the average Forward P/E of 38.83 of its industry.
It is also worth noting that LRCX currently has a PEG ratio of 1.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.31.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 106, positioning it in the top 44% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Lam Research (LRCX) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Lam Research (LRCX - Free Report) closed at $320.59, marking a -2.71% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.47%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 1.25%.
Heading into today, shares of the semiconductor equipment maker had gained 4.33% over the past month, lagging the Computer and Technology sector's gain of 6.08% and outpacing the S&P 500's gain of 1.15%.
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 October 21, 2026. In that report, analysts expect Lam Research to post earnings of $2.17 per share. This would mark year-over-year growth of 72.22%. In the meantime, our current consensus estimate forecasts the revenue to be $8.12 billion, indicating a 52.42% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.34 per share and revenue of $34.46 billion. These totals would mark changes of +60.76% and +48.34%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.15% upward. As of now, Lam Research holds a Zacks Rank of #2 (Buy).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 35.29. This expresses a discount compared to the average Forward P/E of 38.83 of its industry.
It is also worth noting that LRCX currently has a PEG ratio of 1.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.31.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 106, positioning it in the top 44% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.