The most recent trading session ended with Lam Research (LRCX – Free Report) standing at $73.99, reflecting a +0.22% shift from the previouse trading day’s closing. This move outpaced the S&P 500’s daily loss of 0.04%. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq decreased by 0.05%.
The semiconductor equipment maker’s stock has climbed by 3.16% in the past month, falling short of the Computer and Technology sector’s gain of 5.93% and outpacing the S&P 500’s gain of 1.05%.
Investors will be eagerly watching for the performance of Lam Research in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.87, showcasing a 16% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.31 billion, reflecting a 14.59% rise from the equivalent quarter last year.
LRCX’s full-year Zacks Consensus Estimates are calling for earnings of $3.50 per share and revenue of $17.19 billion. These results would represent year-over-year changes of +17.06% and +15.35%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 suggests that these changes in estimates have a direct relationship with upcoming 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 moved 0.68% lower. Lam Research currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 21.12. This valuation marks a discount compared to its industry’s average Forward P/E of 39.57.
Also, we should mention that LRCX has a PEG ratio of 1.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Electronics – Semiconductors was holding an average PEG ratio of 2.16 at yesterday’s closing price.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 43% of all industries, numbering over 250.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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