In the latest trading session, Lam Research (LRCX – Free Report) closed at $661.47, marking a -0.01% move from the previous day. This change was narrower than the S&P 500’s daily loss of 0.85%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the semiconductor equipment maker had gained 10.49% in the past month. In that same time, the Computer and Technology sector lost 0.5%, while the S&P 500 lost 0.97%.
Wall Street will be looking for positivity from Lam Research as it approaches its next earnings report date. In that report, analysts expect Lam Research to post earnings of $8.46 per share. This would mark year-over-year growth of 40.3%. Our most recent consensus estimate is calling for quarterly revenue of $4.4 billion, up 27.38% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $34.29 per share and revenue of $17.76 billion, which would represent changes of +25.88% and +21.44%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lam Research is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 19.29. Its industry sports an average Forward P/E of 19.54, so we one might conclude that Lam Research is trading at a discount comparatively.
Investors should also note that LRCX has a PEG ratio of 1.13 right now. 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. The Semiconductor Equipment – Wafer Fabrication industry currently had an average PEG ratio of 1.49 as of yesterday’s close.
The Semiconductor Equipment – Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.