In the latest trading session, Lam Research (LRCX) closed at $294.48, marking a +0.01% move from the previous day. This change outpaced the S&P 500's 0.02% loss on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.08%.
Heading into today, shares of the semiconductor equipment maker had gained 9.46% over the past month, outpacing the Computer and Technology sector's gain of 4.7% and the S&P 500's gain of 3.81% 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 $3.82 per share, which would represent a year-over-year decline of 1.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.50 billion, down 0.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.21 per share and revenue of $9.89 billion. These totals would mark changes of +4.54% and +2.48%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for LRCX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LRCX is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note LRCX's current valuation metrics, including its Forward P/E ratio of 19.36. Its industry sports an average Forward P/E of 25.36, so we one might conclude that LRCX is trading at a discount comparatively.
Also, we should mention that LRCX has a PEG ratio of 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LRCX's industry had an average PEG ratio of 1.98 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 2, which puts it in the top 1% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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