Lam Research (LRCX) Suffers a Larger Drop Than the General Market: Key Insights
Lam Research (LRCX) closed the most recent trading day at $910.09, moving -1.68% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.65% for the day. Elsewhere, the Dow saw a downswing of 0.49%, while the tech-heavy Nasdaq depreciated by 0.96%.
Heading into today, shares of the semiconductor equipment maker had gained 1.3% over the past month, lagging the Computer and Technology sector's gain of 2.19% and the S&P 500's gain of 3.27% in that time.
Market participants will be closely following the financial results of Lam Research in its upcoming release. It is anticipated that the company will report an EPS of $7.23, marking a 3.43% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.71 billion, indicating a 4.22% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $28.88 per share and revenue of $14.72 billion. These totals would mark changes of -15.48% and -15.54%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lam Research. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.44% upward. Lam Research is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 32.05. This signifies a premium in comparison to the average Forward P/E of 29.55 for its industry.
Also, we should mention that LRCX has a PEG ratio of 3.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 2.89.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
