Lam Research (LRCX - Free Report) closed at $147.90 in the latest trading session, marking a -0.71% move from the prior day. This change lagged the S&P 500's 0.55% loss on the day. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 1.16%.
Heading into today, shares of the semiconductor equipment maker had lost 6.9% over the past month, lagging the Computer and Technology sector's loss of 1.81% and the S&P 500's gain of 0.37% in that time.
Investors will be hoping for strength from LRCX as it approaches its next earnings release, which 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 $15.42 per share and revenue of $10.46 billion. These totals would mark changes of -13.71% and -5.59%, respectively, from last year.
Any recent changes to analyst estimates for LRCX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.57% lower within the past month. LRCX is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that LRCX has a Forward P/E ratio of 9.66 right now. This represents a discount compared to its industry's average Forward P/E of 10.76.
It is also worth noting that LRCX currently has a PEG ratio of 0.58. 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 1.08 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 34, putting 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.
You can find more information on all of these metrics, and much more, on Zacks.com.