Lam Research (LRCX) closed at $366 in the latest trading session, marking a -1.23% move from the prior day. This change was narrower than the S&P 500's 1.51% loss on the day. Meanwhile, the Dow lost 1.71%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Prior to today's trading, shares of the semiconductor equipment maker had lost 14.23% over the past month. This has lagged the Computer and Technology sector's loss of 11.76% and the S&P 500's loss of 9.52% in that time.
Wall Street will be looking for positivity from Lam Research as it approaches its next earnings report date. This is expected to be October 19, 2022. The company is expected to report EPS of $9.53, up 14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.92 billion, up 14.23% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $37.34 per share and revenue of $19.24 billion, which would represent changes of +12.74% and +11.66%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.68% lower within the past month. Lam Research currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 9.92. This represents a discount compared to its industry's average Forward P/E of 12.66.
We can also see that LRCX currently has a PEG ratio of 0.84. 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. LRCX's industry had an average PEG ratio of 1.41 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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