In the latest trading session, Lam Research (LRCX - Free Report) closed at $174.14, marking a -1.16% move from the previous day. This change lagged the S&P 500's 0.03% gain on the day. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq added 0.15%.
Heading into today, shares of the semiconductor equipment maker had lost 6.19% over the past month, lagging the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.98% in that time.
Wall Street will be looking for positivity from LRCX as it approaches its next earnings report date. This is expected to be October 16, 2018. On that day, LRCX is projected to report earnings of $3.20 per share, which would represent a year-over-year decline of 7.51%. Our most recent consensus estimate is calling for quarterly revenue of $2.30 billion, down 7.03% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.51 per share and revenue of $10.53 billion. These totals would mark changes of -13.21% and -4.97%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for LRCX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 2.38% lower within the past month. LRCX is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, LRCX is currently trading at a Forward P/E ratio of 11.36. Its industry sports an average Forward P/E of 12.61, so we one might conclude that LRCX is trading at a discount comparatively.
It is also worth noting that LRCX currently has a PEG ratio of 0.68. 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 1.29 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.