Lam Research (LRCX) Surpasses Market Returns: Some Facts Worth Knowing
In the latest market close, Lam Research (LRCX) reached $938.25, with a +1.69% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.52%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq increased by 0.9%.
Heading into today, shares of the semiconductor equipment maker had gained 11.82% over the past month, outpacing the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 3.85% in that time.
The investment community will be closely monitoring the performance of Lam Research in its forthcoming earnings report. The company is forecasted to report an EPS of $7.23, showcasing a 3.43% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.71 billion, indicating a 4.22% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $28.88 per share and a revenue of $14.72 billion, demonstrating changes of -15.48% and -15.54%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lam Research. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.44% increase. Lam Research presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 31.94. This signifies a premium in comparison to the average Forward P/E of 28.55 for its industry.
It is also worth noting that LRCX currently has a PEG ratio of 3.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Semiconductor Equipment - Wafer Fabrication industry held an average PEG ratio of 2.78.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 18, positioning it in the top 8% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Lam Research Corporation (LRCX) : Free Stock Analysis Report
