Lam Research (LRCX - Free Report) closed at $127.16 in the latest trading session, marking a -0.9% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.06%. Meanwhile, the Dow lost 1.81%, and the Nasdaq, a tech-heavy index, lost 2.99%.
Heading into today, shares of the semiconductor equipment maker had lost 11.22% over the past month, lagging the Computer and Technology sector's loss of 2.89% and the S&P 500's loss of 6.47% 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.
Any recent changes to analyst estimates for LRCX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LRCX is currently a Zacks Rank #3 (Hold).
Digging into valuation, LRCX currently has a Forward P/E ratio of 8.93. This valuation marks a discount compared to its industry's average Forward P/E of 9.12.
Also, we should mention that LRCX has a PEG ratio of 0.74. 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 was holding an average PEG ratio of 1.04 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.