In the latest trading session, Lam Research (LRCX) closed at $236.86, marking a -0.33% move from the previous day. This change lagged the S&P 500's 0% on the day. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, added 0.07%.
Heading into today, shares of the semiconductor equipment maker had gained 14.26% over the past month, outpacing the Computer and Technology sector's gain of 4.17% and the S&P 500's gain of 4.25% in that time.
LRCX will be looking to display strength as it nears its next earnings release. On that day, LRCX is projected to report earnings of $3.01 per share, which would represent a year-over-year decline of 10.42%. Our most recent consensus estimate is calling for quarterly revenue of $2.19 billion, down 6.13% from the year-ago period.
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.
Any recent changes to analyst estimates for LRCX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. LRCX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, LRCX is currently trading at a Forward P/E ratio of 17.48. This represents a discount compared to its industry's average Forward P/E of 24.75.
Investors should also note that LRCX has a PEG ratio of 1.46 right now. 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 industry currently had an average PEG ratio of 2.56 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 198, putting it in the bottom 23% 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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