In the latest trading session, Lam Research (LRCX) closed at $220.57, marking a -1.24% move from the previous day. This change lagged the S&P 500's 2.28% gain on the day. Elsewhere, the Dow gained 2.24%, while the tech-heavy Nasdaq added 1.72%.
Heading into today, shares of the semiconductor equipment maker had lost 27.07% over the past month, lagging the Computer and Technology sector's loss of 12.66% and the S&P 500's loss of 16.08% in that time.
LRCX will be looking to display strength as it nears its next earnings release. On that day, LRCX is projected to report earnings of $4.18 per share, which would represent year-over-year growth of 12.97%. Meanwhile, our latest consensus estimate is calling for revenue of $2.69 billion, up 10.12% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.91 per share and revenue of $10.26 billion, which would represent changes of +9.35% and +6.29%, respectively, from the prior year.
Any recent changes to analyst estimates for LRCX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
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 5.44% lower. LRCX is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, LRCX is holding a Forward P/E ratio of 14.04. This valuation marks a premium compared to its industry's average Forward P/E of 13.62.
We can also see that LRCX currently has a PEG ratio of 0.79. 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 1.11 at yesterday's closing price.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.
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