Lam Research (LRCX) closed the most recent trading day at $81.50, moving +1.49% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.88%. At the same time, the Dow added 1.24%, and the tech-heavy Nasdaq gained 0.65%.
Coming into today, shares of the semiconductor equipment maker had gained 8.81% in the past month. In that same time, the Computer and Technology sector gained 0.37%, while the S&P 500 gained 1.17%.
Market participants will be closely following the financial results of Lam Research in its upcoming release. The company plans to announce its earnings on January 29, 2025. On that day, Lam Research is projected to report earnings of $0.87 per share, which would represent year-over-year growth of 16%. Alongside, our most recent consensus estimate is anticipating revenue of $4.31 billion, indicating a 14.59% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.51 per share and a revenue of $17.19 billion, representing changes of +17.39% and +15.35%, respectively, from the prior 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Lam Research boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Lam Research is presently being traded at a Forward P/E ratio of 22.91. This indicates a discount in contrast to its industry's Forward P/E of 26.04.
We can additionally observe that LRCX currently boasts a PEG ratio of 1.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Semiconductors industry had an average PEG ratio of 2.2 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LRCX in the coming trading sessions, be sure to utilize Zacks.com.
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