In the latest close session, Lam Research (LRCX) was down 2.33% at $89.52. This change lagged the S&P 500's 1.13% loss on the day. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%.
Prior to today's trading, shares of the semiconductor equipment maker had gained 8.1% outpaced the Computer and Technology sector's gain of 7.36% and the S&P 500's gain of 3.55%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company is predicted to post an EPS of $1.2, indicating a 48.15% growth compared to the equivalent quarter last year. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4 per share and revenue of $18.21 billion. These totals would mark changes of +33.78% and +22.15%, respectively, from 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.52% higher. Lam Research is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 22.89. This signifies a discount in comparison to the average Forward P/E of 25.05 for its industry.
We can additionally observe that LRCX currently boasts a PEG ratio of 1.29. 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 1.5 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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