We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lam Research (LRCX) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Lam Research (LRCX - Free Report) closed at $144.57 in the latest trading session, marking a +0.4% move from the prior day. This move lagged the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.42%.
Coming into today, shares of the semiconductor equipment maker had gained 4.01% in the past month. In that same time, the Computer and Technology sector lost 0.69%, while the S&P 500 lost 1.64%.
LRCX will be looking to display strength as it nears its next earnings release, which 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, 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.
It is also important to note the recent changes to analyst estimates for LRCX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. LRCX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, LRCX is currently trading at a Forward P/E ratio of 10.02. This represents a discount compared to its industry's average Forward P/E of 10.21.
It is also worth noting that LRCX currently has a PEG ratio of 0.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.05 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 107, putting it in the top 42% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lam Research (LRCX) Gains But Lags Market: What You Should Know
Lam Research (LRCX - Free Report) closed at $144.57 in the latest trading session, marking a +0.4% move from the prior day. This move lagged the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.42%.
Coming into today, shares of the semiconductor equipment maker had gained 4.01% in the past month. In that same time, the Computer and Technology sector lost 0.69%, while the S&P 500 lost 1.64%.
LRCX will be looking to display strength as it nears its next earnings release, which 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, 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.
It is also important to note the recent changes to analyst estimates for LRCX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. LRCX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, LRCX is currently trading at a Forward P/E ratio of 10.02. This represents a discount compared to its industry's average Forward P/E of 10.21.
It is also worth noting that LRCX currently has a PEG ratio of 0.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.05 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 107, putting it in the top 42% 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.