Lam Research (LRCX) ended the recent trading session at $67.48, demonstrating a +1.58% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.81%. Elsewhere, the Dow gained 1.56%, while the tech-heavy Nasdaq added 2.06%.
Shares of the semiconductor equipment maker have depreciated by 11.73% over the course of the past month, underperforming the Computer and Technology sector's loss of 7.27% and the S&P 500's loss of 6.14%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company's earnings report is expected on April 23, 2025. It is anticipated that the company will report an EPS of $1, marking a 28.21% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.64 billion, indicating a 22.3% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.73 per share and revenue of $17.71 billion, which would represent changes of +24.75% and +18.82%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Lam Research. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Lam Research is currently a Zacks Rank #3 (Hold).
In terms of valuation, Lam Research is presently being traded at a Forward P/E ratio of 17.81. This indicates a discount in contrast to its industry's Forward P/E of 19.96.
One should further note that LRCX currently holds a PEG ratio of 1.08. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.3.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 19% echelons of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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