The most recent trading session ended with Lam Research (LRCX) standing at $84.87, reflecting a +0.12% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 0.53%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 0.83%.
Prior to today's trading, shares of the semiconductor equipment maker had gained 12.94% over the past month. This has outpaced the Computer and Technology sector's gain of 8.67% and the S&P 500's gain of 5.17% in that time.
Market participants will be closely following the financial results of Lam Research in its upcoming release. In that report, analysts expect Lam Research to post earnings of $1.20 per share. This would mark year-over-year growth of 48.15%. Alongside, our most recent consensus estimate is anticipating revenue of $4.98 billion, indicating a 28.52% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4 per share and a revenue of $18.21 billion, signifying shifts of +33.78% and +22.15%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lam Research. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. The Zacks Consensus EPS estimate has moved 0.52% higher within the past month. Right now, Lam Research possesses a Zacks Rank of #2 (Buy).
Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 21.17. Its industry sports an average Forward P/E of 25.08, so one might conclude that Lam Research is trading at a discount comparatively.
It's also important to note that LRCX currently trades at a PEG ratio of 1.19. 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. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.65 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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