Lam Research (LRCX) Stock Falls Amid Market Uptick: What Investors Need to Know
The latest trading session saw Lam Research (LRCX) ending at $789.67, denoting a -0.66% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.04%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.03%.
The semiconductor equipment maker's stock has climbed by 11.34% in the past month, exceeding the Computer and Technology sector's gain of 4.9% and the S&P 500's gain of 5.28%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company is predicted to post an EPS of $7.05, indicating a 34.17% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.71 billion, indicating a 29.72% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.56 per share and a revenue of $14.62 billion, signifying shifts of -19.34% and -16.13%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.33% lower within the past month. Lam Research is currently a Zacks Rank #3 (Hold).
With respect to valuation, Lam Research is currently being traded at a Forward P/E ratio of 28.84. Its industry sports an average Forward P/E of 26.17, so one might conclude that Lam Research is trading at a premium comparatively.
We can also see that LRCX currently has a PEG ratio of 4.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. LRCX's industry had an average PEG ratio of 3.87 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Lam Research Corporation (LRCX) : Free Stock Analysis Report
