In the latest market close, Lam Research (LRCX) reached $77.45, with a +1.12% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.61%. Elsewhere, the Dow saw a downswing of 0.54%, while the tech-heavy Nasdaq depreciated by 0.62%.
The semiconductor equipment maker's stock has dropped by 2.06% in the past month, falling short of the Computer and Technology sector's gain of 3.41% and the S&P 500's gain of 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. In that report, analysts expect Lam Research to post earnings of $0.87 per share. This would mark year-over-year growth of 16%. In the meantime, our current consensus estimate forecasts the revenue to be $4.31 billion, indicating a 14.61% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.50 per share and a revenue of $17.23 billion, demonstrating changes of +17.06% and +15.6%, respectively, from the preceding year.
It is also important to note the 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 company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.4% decrease. Lam Research is currently a Zacks Rank #3 (Hold).
Looking at valuation, Lam Research is presently trading at a Forward P/E ratio of 21.86. This signifies a discount in comparison to the average Forward P/E of 34.1 for its industry.
One should further note that LRCX currently holds a PEG ratio of 1.22. 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 Electronics - Semiconductors was holding an average PEG ratio of 1.98 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 121, placing it within the top 49% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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