In the latest close session, Lam Research (LRCX) was down 5.03% at $369.34. The stock fell short of the S&P 500, which registered a loss of 0.57% for the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 1.15%.
Shares of the semiconductor equipment maker have appreciated by 39.92% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.85%, and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of Lam Research in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.65, reflecting a 24.06% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.64 billion, reflecting a 28.42% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.7 per share and a revenue of $23.1 billion, demonstrating changes of +37.68% and +25.3%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Lam Research. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 0.49% higher. At present, Lam Research boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Lam Research is currently being traded at a Forward P/E ratio of 68.22. This valuation marks a premium compared to its industry average Forward P/E of 53.71.
We can also see that LRCX currently has a PEG ratio of 3.2. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 58, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).