Lam Research (LRCX) closed the most recent trading day at $142.41, moving -1.64% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.63%. Meanwhile, the Dow experienced a drop of 0.65%, and the technology-dominated Nasdaq saw a decrease of 0.47%.
The semiconductor equipment maker's stock has climbed by 18.77% in the past month, exceeding the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 0.92%.
Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. The company's earnings report is set to go public on October 22, 2025. The company is predicted to post an EPS of $1.21, indicating a 40.7% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.22 billion, up 25.25% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.53 per share and a revenue of $20.13 billion, indicating changes of +9.42% and +9.21%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lam Research. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.51% rise in the Zacks Consensus EPS estimate. Lam Research presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 32. This indicates a discount in contrast to its industry's Forward P/E of 38.28.
We can also see that LRCX currently has a PEG ratio of 1.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. LRCX's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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