Lam Research (LRCX) ended the recent trading session at $228.34, demonstrating a +2.67% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.16%. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.18%.
The stock of semiconductor equipment maker has risen by 26.98% in the past month, leading the Computer and Technology sector's loss of 1.07% and the S&P 500's loss of 0.42%.
The investment community will be closely monitoring the performance of Lam Research in its forthcoming earnings report. The company is scheduled to release its earnings on January 28, 2026. The company is expected to report EPS of $1.16, up 27.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.22 billion, up 19.23% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.83 per share and a revenue of $21.12 billion, representing changes of +16.67% and +14.56%, respectively, from the prior year.
Any recent changes to analyst estimates for Lam Research should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.57% higher. At present, Lam Research boasts a Zacks Rank of #1 (Strong Buy).
Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 46.03. This indicates a premium in contrast to its industry's Forward P/E of 36.82.
It is also worth noting that LRCX currently has a PEG ratio of 2.55. 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. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.97.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 48, placing it within the top 20% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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