In the latest close session, Lam Research (LRCX) was up +1.72% at $99.83. The stock's performance was ahead of the S&P 500's daily loss of 0.07%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.03%.
Heading into today, shares of the semiconductor equipment maker had gained 11.14% over the past month, outpacing the Computer and Technology sector's gain of 5.58% and the S&P 500's gain of 3.94%.
The investment community will be closely monitoring the performance of Lam Research in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.2, marking a 48.15% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.99 billion, indicating a 28.89% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4 per share and revenue of $18.22 billion, indicating changes of +33.78% and 0%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.85% higher. Lam Research is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Lam Research is at present trading with a Forward P/E ratio of 24.55. This valuation marks a discount compared to its industry average Forward P/E of 27.61.
Also, we should mention that LRCX has a PEG ratio of 1.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Semiconductors was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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