Back to top

Image: Bigstock

Lattice Semiconductor (LSCC) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Lattice Semiconductor (LSCC - Free Report) closed at $19.98 in the latest trading session, marking a +1.27% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.17%.

Coming into today, shares of the chipmaker had gained 1.91% in the past month. In that same time, the Computer and Technology sector gained 5.65%, while the S&P 500 gained 4.92%.

LSCC will be looking to display strength as it nears its next earnings release. On that day, LSCC is projected to report earnings of $0.15 per share, which would represent year-over-year growth of 36.36%. Our most recent consensus estimate is calling for quarterly revenue of $103 million, up 1.5% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.57 per share and revenue of $407.89 million. These totals would mark changes of +72.73% and +2.28%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for LSCC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. LSCC currently has a Zacks Rank of #2 (Buy).

In terms of valuation, LSCC is currently trading at a Forward P/E ratio of 34.77. This valuation marks a premium compared to its industry's average Forward P/E of 19.97.

It is also worth noting that LSCC currently has a PEG ratio of 2.78. 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. The Electronics - Semiconductors industry currently had an average PEG ratio of 2.1 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 36% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Lattice Semiconductor Corporation (LSCC) - free report >>

Published in