Lam Research (LRCX - Free Report) closed the most recent trading day at $168.83, moving +1% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the semiconductor equipment maker had lost 4.87% over the past month. This has lagged the Computer and Technology sector's gain of 2.89% and the S&P 500's gain of 1.81% in that time.
Investors will be hoping for strength from LRCX as it approaches its next earnings release. The company is expected to report EPS of $3.38, down 29.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.40 billion, down 16.92% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.89 per share and revenue of $9.57 billion, which would represent changes of -22.25% and -13.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for LRCX. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. LRCX currently has a Zacks Rank of #3 (Hold).
In terms of valuation, LRCX is currently trading at a Forward P/E ratio of 12.03. This represents a discount compared to its industry's average Forward P/E of 12.85.
Meanwhile, LRCX's PEG ratio is currently 1. 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 1.25 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 238, putting it in the bottom 7% 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.