In the latest trading session, Lam Research (LRCX - Free Report) closed at $184.89, marking a +0.36% move from the previous day. This change outpaced the S&P 500's 0.23% gain on the day. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq lost 0.08%.
Heading into today, shares of the semiconductor equipment maker had gained 2.41% over the past month, lagging the Computer and Technology sector's gain of 5.16% and the S&P 500's gain of 3.84% in that time.
LRCX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.40, down 35.97% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.35 billion, down 24.82% from the year-ago period.
Investors might also notice recent changes to analyst estimates for LRCX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. LRCX is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, LRCX is holding a Forward P/E ratio of 12.77. Its industry sports an average Forward P/E of 15.03, so we one might conclude that LRCX is trading at a discount comparatively.
Meanwhile, LRCX's PEG ratio is currently 1.06. 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 2.07 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 67, putting it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.