Yahoo Finance Lam Research (LRCX) Stock Sinks As Market Gains: Here's Why
Lam Research (LRCX) closed the most recent trading day at $758.47, moving -1.46% from the previous trading session. This move lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.52%.
Shares of the semiconductor equipment maker witnessed a loss of 11.64% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.56% and the S&P 500's gain of 3.67%.
Market participants will be closely following the financial results of Lam Research in its upcoming release. The company is expected to report EPS of $8, up 16.79% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $4.05 billion, indicating a 16.3% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $35.20 per share and revenue of $17.31 billion, which would represent changes of +17.57% and +16.13%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lam Research. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% higher. Lam Research presently features a Zacks Rank of #3 (Hold).
Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 21.87. Its industry sports an average Forward P/E of 25.8, so one might conclude that Lam Research is trading at a discount comparatively.
Investors should also note that LRCX has a PEG ratio of 1.48 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 2.12 as trading concluded yesterday.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Lam Research Corporation (LRCX) : Free Stock Analysis Report
