In the latest trading session, Lam Research (LRCX - Free Report) closed at $262.94, marking a -1.46% move from the previous day. This move lagged the S&P 500's daily loss of 0.86%. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, lost 1.13%.
Coming into today, shares of the semiconductor equipment maker had lost 1.55% in the past month. In that same time, the Computer and Technology sector gained 4.5%, while the S&P 500 gained 3.66%.
LRCX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.82, down 1.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.50 billion, down 0.79% from the year-ago period.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $15.21 per share and revenue of $9.89 billion. These results would represent year-over-year changes of +4.54% and +2.48%, respectively.
Any recent changes to analyst estimates for LRCX should also be noted by investors. Recent revisions tend to reflect the latest near-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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. LRCX is currently a Zacks Rank #2 (Buy).
Investors should also note LRCX's current valuation metrics, including its Forward P/E ratio of 17.54. Its industry sports an average Forward P/E of 22.89, so we one might conclude that LRCX is trading at a discount comparatively.
Also, we should mention that LRCX has a PEG ratio of 1.29. 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 was holding an average PEG ratio of 1.87 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.