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

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Lattice Semiconductor (LSCC - Free Report) closed at $18.89 in the latest trading session, marking a +1.94% move from the prior day. This change outpaced the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.6%.

Prior to today's trading, shares of the chipmaker had lost 7.95% over the past month. This has lagged the Computer and Technology sector's loss of 1.05% and the S&P 500's loss of 1.87% in that time.

Investors will be hoping for strength from LSCC as it approaches its next earnings release, which is expected to be October 29, 2019. In that report, analysts expect LSCC to post earnings of $0.15 per share. This would mark year-over-year growth of 36.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

It is also important to note the recent changes to analyst estimates for LSCC. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LSCC is currently a Zacks Rank #3 (Hold).

Investors should also note LSCC's current valuation metrics, including its Forward P/E ratio of 32.65. This valuation marks a premium compared to its industry's average Forward P/E of 19.12.

It is also worth noting that LSCC currently has a PEG ratio of 2.61. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.


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