In the latest trading session, Lam Research (LRCX) closed at $284.52, marking a +0.74% move from the previous day. The stock lagged the S&P 500's daily gain of 1.31%. Meanwhile, the Dow gained 1.9%, and the Nasdaq, a tech-heavy index, added 1.01%.
Investors will be hoping for strength from LRCX as it approaches its next earnings release. In that report, analysts expect LRCX to post earnings of $4.19 per share. This would mark year-over-year growth of 15.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.72 billion, up 15.24% from the year-ago period.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $15.39 per share and revenue of $10.01 billion. These results would represent year-over-year changes of +5.77% and +3.71%, respectively.
Investors should also note any recent changes to analyst estimates for LRCX. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 #3 (Hold).
Valuation is also important, so investors should note that LRCX has a Forward P/E ratio of 18.35 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.38.
We can also see that LRCX currently has a PEG ratio of 1.43. 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 Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.43 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 11, putting it in the top 5% 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.
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