Lam Research (LRCX) closed at $239.07 in the latest trading session, marking a -4.17% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.54% for the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 1.18%.
Shares of the semiconductor equipment maker have appreciated by 4.13% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.82%, and the S&P 500's gain of 0.58%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company is predicted to post an EPS of $1.33, indicating a 27.88% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.74 billion, up 21.71% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.26 per share and revenue of $22.13 billion, indicating changes of +27.05% and +20.03%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Lam Research. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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, there's been a 8.37% rise in the Zacks Consensus EPS estimate. At present, Lam Research boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Lam Research has a Forward P/E ratio of 47.44 right now. This denotes a premium relative to the industry average Forward P/E of 39.69.
It is also worth noting that LRCX currently has a PEG ratio of 2.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% 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.
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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