Lam Research (LRCX - Free Report) closed at $151.68 in the latest trading session, marking a -0.01% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.25%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.53%.
Heading into today, shares of the semiconductor equipment maker had gained 8.52% over the past month, outpacing the Computer and Technology sector's loss of 3.92% and the S&P 500's loss of 2.35% 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 January 23, 2019. On that day, LRCX is projected to report earnings of $3.67 per share, which would represent a year-over-year decline of 15.44%. Meanwhile, our latest consensus estimate is calling for revenue of $2.50 billion, down 3.09% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.37 per share and revenue of $9.95 billion. These totals would mark changes of -19.59% and -10.19%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for LRCX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 6.82% lower within the past month. LRCX is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that LRCX has a Forward P/E ratio of 10.56 right now. This represents a premium compared to its industry's average Forward P/E of 10.54.
We can also see that LRCX currently has a PEG ratio of 0.88. 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. LRCX's industry had an average PEG ratio of 0.97 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 198, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.