In the latest trading session, Lam Research (LRCX – Free Report) closed at $77.04, marking a -0.62% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.
The semiconductor equipment maker’s stock has climbed by 3.18% in the past month, exceeding the Computer and Technology sector’s loss of 0.17% and the S&P 500’s loss of 2.8%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company’s earnings report is expected on January 29, 2025. The company’s upcoming EPS is projected at $0.87, signifying a 16% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.31 billion, up 14.59% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.50 per share and revenue of $17.19 billion, indicating changes of +17.06% and +15.35%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Lam Research. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.22% downward. Currently, Lam Research is carrying a Zacks Rank of #4 (Sell).
With respect to valuation, Lam Research is currently being traded at a Forward P/E ratio of 22.17. Its industry sports an average Forward P/E of 27.81, so one might conclude that Lam Research is trading at a discount comparatively.
It is also worth noting that LRCX currently has a PEG ratio of 1.43. 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 industry had an average PEG ratio of 2.13 as trading concluded yesterday.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 42% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Financial Market Newsflash
No financial news published today. Check back later.
