In the latest trading session, Lam Research (LRCX) closed at $236.28, marking a -0.34% move from the previous day. This change lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Prior to today's trading, shares of the semiconductor equipment maker had gained 0.95% over the past month. This has outpaced the Computer and Technology sector's loss of 0.36% and the S&P 500's loss of 0.91% in that time.
LRCX will be looking to display strength as it nears its next earnings release, which is expected to be October 23, 2019. In that report, analysts expect LRCX to post earnings of $3 per share. This would mark a year-over-year decline of 10.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.19 billion, down 6.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.61 per share and revenue of $9.28 billion, which would represent changes of -6.46% and -3.83%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for LRCX. These recent revisions tend to reflect the evolving nature of short-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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. LRCX is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note LRCX's current valuation metrics, including its Forward P/E ratio of 17.42. This valuation marks a discount compared to its industry's average Forward P/E of 23.83.
Meanwhile, LRCX's PEG ratio is currently 1.6. 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 2.66 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 101, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.