Yahoo Finance Lam Research (LRCX) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Lam Research (LRCX) closed at $419.46, marking a +0.28% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.22%.
Heading into today, shares of the semiconductor equipment maker had lost 11.53% over the past month, lagging the Computer and Technology sector's loss of 9.55% and the S&P 500's loss of 10.02% in that time.
Investors will be hoping for strength from Lam Research as it approaches its next earnings release. On that day, Lam Research is projected to report earnings of $7.30 per share, which would represent a year-over-year decline of 9.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.21 billion, up 1.53% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $31.59 per share and revenue of $16.8 billion. These totals would mark changes of +15.97% and +14.86%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Lam Research. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Lam Research is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Lam Research has a Forward P/E ratio of 13.28 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.36.
We can also see that LRCX currently has a PEG ratio of 0.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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