Lam Research (LRCX) closed the most recent trading day at $228, moving -1.04% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.79%. Elsewhere, the Dow lost 1.86%, while the tech-heavy Nasdaq lost 1.56%.
Coming into today, shares of the semiconductor equipment maker had gained 8.19% in the past month. In that same time, the Computer and Technology sector gained 1.04%, while the S&P 500 gained 0.72%.
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.
Any recent changes to analyst estimates for LRCX should also be noted by investors. 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.
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, 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 currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, LRCX is currently trading at a Forward P/E ratio of 16.94. This valuation marks a discount compared to its industry's average Forward P/E of 24.21.
We can also see that LRCX currently has a PEG ratio of 1.41. 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 2.51 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 51, which puts it in the top 20% 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.
To follow LRCX in the coming trading sessions, be sure to utilize Zacks.com.
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