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Lam Research (LRCX) Dips More Than Broader Markets: What You Should Know
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Lam Research (LRCX - Free Report) closed at $268.02 in the latest trading session, marking a -0.68% move from the prior day. This move lagged the S&P 500's daily loss of 0.32%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.4%.
Heading into today, shares of the semiconductor equipment maker had lost 1.55% over the past month, lagging the Computer and Technology sector's gain of 2.58% and the S&P 500's gain of 2.51% 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 $3.82, down 1.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LRCX is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, LRCX currently has a Forward P/E ratio of 17.74. This represents a discount compared to its industry's average Forward P/E of 23.22.
It is also worth noting that LRCX currently has a PEG ratio of 1.31. 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. LRCX's industry had an average PEG ratio of 1.83 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 3, putting it in the top 2% 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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Lam Research (LRCX) Dips More Than Broader Markets: What You Should Know
Lam Research (LRCX - Free Report) closed at $268.02 in the latest trading session, marking a -0.68% move from the prior day. This move lagged the S&P 500's daily loss of 0.32%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.4%.
Heading into today, shares of the semiconductor equipment maker had lost 1.55% over the past month, lagging the Computer and Technology sector's gain of 2.58% and the S&P 500's gain of 2.51% 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 $3.82, down 1.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LRCX is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, LRCX currently has a Forward P/E ratio of 17.74. This represents a discount compared to its industry's average Forward P/E of 23.22.
It is also worth noting that LRCX currently has a PEG ratio of 1.31. 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. LRCX's industry had an average PEG ratio of 1.83 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 3, putting it in the top 2% 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.