In the latest trading session, Lam Research (LRCX) closed at $227.92, marking a +0.52% move from the previous day. This move outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.17%.
Heading into today, shares of the semiconductor equipment maker had gained 12.54% over the past month, outpacing the Computer and Technology sector's gain of 5.65% and the S&P 500's gain of 4.92% in that time.
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 $3.01 per share. This would mark a year-over-year decline of 10.42%. 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 $13.57 per share and revenue of $9.28 billion, which would represent changes of -6.74% and -3.87%, respectively, from the prior year.
Any recent changes to analyst estimates for LRCX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LRCX is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note LRCX's current valuation metrics, including its Forward P/E ratio of 16.71. This valuation marks a discount compared to its industry's average Forward P/E of 23.54.
Also, we should mention that LRCX has a PEG ratio of 1.39. 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. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 2.43 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 231, putting it in the bottom 10% 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.
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