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Lam Research (LRCX) Stock Moves -0.09%: What You Should Know

Lam Research (LRCX) closed the most recent trading day at $449.79, moving -0.09% from the previous trading session. This change was narrower than the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Coming into today, shares of the semiconductor equipment maker had lost 15.22% in the past month. In that same time, the Computer and Technology sector gained 3.24%, while the S&P 500 lost 0.62%.

Investors will be hoping for strength from Lam Research as it approaches its next earnings release. The company is expected to report EPS of $7.30, down 9.77% from the prior-year quarter. 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.

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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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Lam Research is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 14.25. Its industry sports an average Forward P/E of 14.2, so we one might conclude that Lam Research is trading at a premium comparatively.

Meanwhile, LRCX's PEG ratio is currently 0.92. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.46 at yesterday's closing price.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 5% 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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