In the latest trading session, Lam Research (LRCX - Free Report) closed at $180.25, marking a -1.17% move from the previous day. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.34%.
Prior to today's trading, shares of the semiconductor equipment maker had gained 0.58% over the past month. This has lagged the Computer and Technology sector's gain of 4.35% and the S&P 500's gain of 1.83% in that time.
Wall Street will be looking for positivity from LRCX as it approaches its next earnings report date. The company is expected to report EPS of $3.38, down 29.44% 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 -22.27% and -13.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for LRCX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. 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 13.13 right now. This represents a discount compared to its industry's average Forward P/E of 13.75.
Also, we should mention that LRCX has a PEG ratio of 1.09. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 240, putting it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.