In the latest trading session, Lam Research (LRCX - Free Report) closed at $190.93, marking a -0.32% move from the previous day. This move lagged the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the semiconductor equipment maker had gained 13.21% in the past month. In that same time, the Computer and Technology sector gained 5.1%, while the S&P 500 gained 2.57%.
Wall Street will be looking for positivity from LRCX as it approaches its next earnings report date. This is expected to be April 24, 2019. On that day, LRCX is projected to report earnings of $3.38 per share, which would represent a year-over-year decline of 29.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.40 billion, down 16.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.89 per share and revenue of $9.57 billion. These totals would mark changes of -22.27% and -13.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for LRCX. These revisions help to show the ever-changing nature of near-term business trends. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. LRCX is currently a Zacks Rank #4 (Sell).
Digging into valuation, LRCX currently has a Forward P/E ratio of 13.79. This represents a discount compared to its industry's average Forward P/E of 14.71.
Investors should also note that LRCX has a PEG ratio of 1.15 right now. 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 industry currently had an average PEG ratio of 1.41 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 225, which puts it in the bottom 12% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.