Lam Research (LRCX) Stock Sinks As Market Gains: What You Should Know
Lam Research (LRCX) closed the most recent trading day at $640.36, moving -0.28% from the previous trading session. This change lagged the S&P 500's 0.45% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.99%.
Heading into today, shares of the semiconductor equipment maker had gained 4.13% over the past month, outpacing the Computer and Technology sector's gain of 3.21% and lagging the S&P 500's gain of 4.25% in that time.
Investors will be hoping for strength from Lam Research as it approaches its next earnings release. On that day, Lam Research is projected to report earnings of $5.03 per share, which would represent a year-over-year decline of 43.04%. Meanwhile, our latest consensus estimate is calling for revenue of $3.12 billion, down 32.73% from the prior-year quarter.
LRCX's full-year Zacks Consensus Estimates are calling for earnings of $33.19 per share and revenue of $17.34 billion. These results would represent year-over-year changes of +0.21% and +0.65%, respectively.
Investors might also notice recent changes to 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lam Research is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 19.35. Its industry sports an average Forward P/E of 21.23, so we one might conclude that Lam Research is trading at a discount comparatively.
We can also see that LRCX currently has a PEG ratio of 7.56. 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 3.65 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 111, putting it in the top 45% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Lam Research Corporation (LRCX) : Free Stock Analysis Report
