Lam Research (LRCX) ended the recent trading session at $99.62, demonstrating a -2.07% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.14%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.27%.
The semiconductor equipment maker's shares have seen an increase of 13.64% over the last month, surpassing the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company's earnings report is expected on July 30, 2025. The company is expected to report EPS of $1.2, up 48.15% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.99 billion, up 28.89% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4 per share and a revenue of $18.22 billion, indicating changes of +33.78% and 0%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. Lam Research is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Lam Research is presently trading at a Forward P/E ratio of 25.45. This indicates a discount in contrast to its industry's Forward P/E of 28.25.
It's also important to note that LRCX currently trades at a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.61.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Lam Research Corporation (LRCX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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