In the latest trading session, Lam Research (LRCX - Free Report) closed at $137.62, marking a -1.55% move from the previous day. This change was narrower than the S&P 500's 2.06% loss on the day. Elsewhere, the Dow lost 2.13%, while the tech-heavy Nasdaq lost 1.25%.
Heading into today, shares of the semiconductor equipment maker had lost 7.04% over the past month, lagging the Computer and Technology sector's loss of 6.61% and the S&P 500's loss of 3.01% 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%. Meanwhile, our latest consensus estimate is calling for revenue of $2.30 billion, down 7.03% from the prior-year quarter.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $15.42 per share and revenue of $10.46 billion. These results would represent year-over-year changes of -13.71% and -5.59%, respectively.
Investors should also note any recent changes to analyst estimates for LRCX. 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 company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.57% lower. LRCX is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, LRCX is holding a Forward P/E ratio of 9.06. Its industry sports an average Forward P/E of 9.86, 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 0.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 0.99 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 32, putting it in the top 13% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.