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Lam Research (LRCX) Dips More Than Broader Markets: What You Should Know

Lam Research (LRCX) closed at $546.78 in the latest trading session, marking a -1.02% move from the prior day. This move lagged the S&P 500's daily loss of 0.24%.

Coming into today, shares of the semiconductor equipment maker had lost 9.25% in the past month. In that same time, the Computer and Technology sector lost 5.49%, while the S&P 500 lost 2.12%.

Wall Street will be looking for positivity from LRCX as it approaches its next earnings report date. This is expected to be October 20, 2021. In that report, analysts expect LRCX to post earnings of $8.13 per share. This would mark year-over-year growth of 43.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.3 billion, up 35.46% from the year-ago period.

LRCX's full-year Zacks Consensus Estimates are calling for earnings of $33.45 per share and revenue of $17.62 billion. These results would represent year-over-year changes of +22.8% and +20.44%, respectively.

Investors should also note any recent changes to analyst estimates for LRCX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant within the past month. LRCX is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that LRCX has a Forward P/E ratio of 16.52 right now. This valuation marks a discount compared to its industry's average Forward P/E of 18.9.

It is also worth noting that LRCX currently has a PEG ratio of 0.97. 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. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 0.97 based on yesterday's closing prices.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 19% 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.

To follow LRCX in the coming trading sessions, be sure to utilize 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.

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