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Lam Research (LRCX) Dips More Than Broader Market: What You Should Know

Lam Research (LRCX) ended the recent trading session at $1,050.35, demonstrating a -1.03% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Shares of the semiconductor equipment maker have appreciated by 10.77% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.77% and the S&P 500's gain of 3.15%.

The investment community will be closely monitoring the performance of Lam Research in its forthcoming earnings report. In that report, analysts expect Lam Research to post earnings of $7.52 per share. This would mark year-over-year growth of 25.75%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.81 billion, indicating a 18.91% increase compared to the same quarter of the previous year.

LRCX's full-year Zacks Consensus Estimates are calling for earnings of $29.67 per share and revenue of $14.84 billion. These results would represent year-over-year changes of -13.17% and -14.83%, respectively.

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Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lam Research. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Lam Research boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Lam Research is presently trading at a Forward P/E ratio of 35.77. Its industry sports an average Forward P/E of 34.45, so one might conclude that Lam Research is trading at a premium comparatively.

We can also see that LRCX currently has a PEG ratio of 3.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Semiconductor Equipment - Wafer Fabrication industry stood at 3.4 at the close of the market yesterday.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% of all 250+ industries.

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.

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

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