Lam Research (LRCX) Surpasses Market Returns: Some Facts Worth Knowing
The most recent trading session ended with Lam Research (LRCX) standing at $981.86, reflecting a +1.95% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.51% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.58%.
Shares of the semiconductor equipment maker have appreciated by 15.39% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.47% and the S&P 500's gain of 2.94%.
The investment community will be paying close attention to the earnings performance of Lam Research in its upcoming release. The company is predicted to post an EPS of $7.23, indicating a 3.43% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.71 billion, down 4.22% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $28.88 per share and a revenue of $14.72 billion, indicating changes of -15.48% and -15.54%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lam Research. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.44% higher. Lam Research presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Lam Research is presently being traded at a Forward P/E ratio of 33.34. This represents a premium compared to its industry's average Forward P/E of 30.73.
One should further note that LRCX currently holds a PEG ratio of 3.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor Equipment - Wafer Fabrication industry currently had an average PEG ratio of 3.01 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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
