Lam Research (LRCX) closed at $203.13 in the latest trading session, marking a -1.85% move from the prior day. This change lagged the S&P 500's 0.34% loss on the day. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq appreciated by 0.16%.
Heading into today, shares of the semiconductor equipment maker had gained 24.82% over the past month, outpacing the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company is forecasted to report an EPS of $1.15, showcasing a 26.37% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $5.22 billion, up 19.23% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.79 per share and a revenue of $21.04 billion, signifying shifts of +15.7% and +14.11%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Lam Research possesses a Zacks Rank of #2 (Buy).
From a valuation perspective, Lam Research is currently exchanging hands at a Forward P/E ratio of 43.21. This signifies a premium in comparison to the average Forward P/E of 34.87 for its industry.
We can additionally observe that LRCX currently boasts a PEG ratio of 2.39. 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 Electronics - Semiconductors was holding an average PEG ratio of 1.98 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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