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Lam Research (LRCX) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Lam Research (LRCX) closed at $1,038.50 in the latest trading session, marking a +0.08% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.23%. Elsewhere, the Dow saw a downswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.34%.

Coming into today, shares of the semiconductor equipment maker had gained 9.48% in the past month. In that same time, the Computer and Technology sector lost 2.01%, while the S&P 500 gained 3.96%.

Market participants will be closely following the financial results of Lam Research in its upcoming release. 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.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $29.67 per share and revenue of $14.84 billion. These totals would mark changes of -13.17% and -14.83%, respectively, from last year.

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Investors might also notice recent changes to analyst estimates for Lam Research. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Currently, Lam Research is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 34.97. This signifies a premium in comparison to the average Forward P/E of 34.2 for its industry.

Investors should also note that LRCX has a PEG ratio of 3.58 right now. 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. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 3.35.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 222, this industry ranks in the bottom 12% of all industries, numbering over 250.

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.

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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