In the latest trading session, Lam Research (LRCX - Free Report) closed at $153.19, marking a -0.31% move from the previous day. The stock lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the semiconductor equipment maker had lost 11.89% over the past month. This has lagged the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.1% 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. In that report, analysts expect LRCX to post earnings of $3.20 per share. This would mark 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 help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. LRCX currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that LRCX has a Forward P/E ratio of 9.91 right now. Its industry sports an average Forward P/E of 11.17, so we one might conclude that LRCX is trading at a discount comparatively.
Investors should also note that LRCX has a PEG ratio of 0.59 right now. 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. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 1.14 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 23, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.