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Lattice Semiconductor (LSCC) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Lattice Semiconductor (LSCC) closed at $16.66 in the latest trading session, marking a -0.77% move from the prior day. This change lagged the S&P 500's 0.53% loss on the day. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1%.

Heading into today, shares of the chipmaker had gained 23.27% over the past month, outpacing the Computer and Technology sector's gain of 3.84% and the S&P 500's gain of 2.68% in that time.

Investors will be hoping for strength from LSCC as it approaches its next earnings release, which is expected to be July 30, 2019. On that day, LSCC is projected to report earnings of $0.12 per share, which would represent year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $100 million, down 2.65% from the year-ago period.

LSCC's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $402.60 million. These results would represent year-over-year changes of +48.48% and +0.95%, respectively.

Investors should also note any recent changes to analyst estimates for LSCC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LSCC is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, LSCC currently has a Forward P/E ratio of 34.44. For comparison, its industry has an average Forward P/E of 20.14, which means LSCC is trading at a premium to the group.

We can also see that LSCC currently has a PEG ratio of 2.76. 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 Electronics - Semiconductors industry currently had an average PEG ratio of 1.86 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 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.

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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