Lam Research (LRCX) closed the most recent trading day at $242.83, moving +0.51% from the previous trading session. This change outpaced the S&P 500's 0.24% loss on the day. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.58%.
Coming into today, shares of the semiconductor equipment maker had gained 18.85% in the past month. In that same time, the Computer and Technology sector gained 5.16%, while the S&P 500 gained 4.96%.
LRCX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.01, down 10.42% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.19 billion, down 6.13% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.60 per share and revenue of $9.28 billion, which would represent changes of -6.53% and -3.83%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for LRCX. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. LRCX is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, LRCX is holding a Forward P/E ratio of 17.77. This valuation marks a discount compared to its industry's average Forward P/E of 25.74.
Also, we should mention that LRCX has a PEG ratio of 1.48. 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 2.53 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 196, putting it in the bottom 24% 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.
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