In the latest trading session, Lam Research (LRCX - Free Report) closed at $152.75, marking a -0.71% move from the previous day. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Coming into today, shares of the semiconductor equipment maker had gained 8.54% in the past month. In that same time, the Computer and Technology sector gained 1.37%, while the S&P 500 gained 3.57%.
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. In that report, analysts expect LRCX to post earnings of $3.67 per share. This would mark a year-over-year decline of 15.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.50 billion, down 3.09% from the year-ago period.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $14.37 per share and revenue of $9.95 billion. These results would represent year-over-year changes of -19.59% and -10.19%, respectively.
Investors should also note any recent changes to analyst estimates for LRCX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. LRCX is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note LRCX's current valuation metrics, including its Forward P/E ratio of 10.71. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 10.71.
Also, we should mention that LRCX has a PEG ratio of 0.89. 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 1.22 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 234, which puts it in the bottom 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.