Lam Research (LRCX - Free Report) closed the most recent trading day at $294.41, moving -1.58% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.71%. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq lost 1.87%.
Heading into today, shares of the semiconductor equipment maker had lost 7.54% over the past month, outpacing the Computer and Technology sector's loss of 8.08% and the S&P 500's loss of 9.13% in that time.
Investors will be hoping for strength from LRCX as it approaches its next earnings release. On that day, LRCX is projected to report earnings of $4.57 per share, which would represent year-over-year growth of 23.51%. Meanwhile, our latest consensus estimate is calling for revenue of $2.80 billion, up 14.96% from the prior-year quarter.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $16.82 per share and revenue of $10.53 billion. These results would represent year-over-year changes of +15.6% and +9.07%, respectively.
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.
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 currently a Zacks Rank #2 (Buy).
Investors should also note LRCX's current valuation metrics, including its Forward P/E ratio of 17.78. For comparison, its industry has an average Forward P/E of 18.12, which means LRCX is trading at a discount to the group.
We can also see that LRCX currently has a PEG ratio of 1.01. 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 1.44 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.