Lam Research (LRCX) closed the most recent trading day at $336.41, moving -2.12% from the previous trading session. This move lagged the S&P 500's daily gain of 0.41%. At the same time, the Dow added 1.73%, and the tech-heavy Nasdaq lost 0.09%.
Shares of the semiconductor equipment maker witnessed a gain of 15.66% over the previous month, beating the performance of the Computer and Technology sector with its gain of 10.03%, and the S&P 500's gain of 4.59%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company is expected to report EPS of $1.65, up 24.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.64 billion, up 28.42% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.67 per share and a revenue of $23.03 billion, indicating changes of +36.96% and +24.95%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Lam Research. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has remained steady. Lam Research is currently sporting a Zacks Rank of #2 (Buy).
In the context of valuation, Lam Research is at present trading with a Forward P/E ratio of 60.59. This signifies a premium in comparison to the average Forward P/E of 51.74 for its industry.
It's also important to note that LRCX currently trades at a PEG ratio of 2.85. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.18.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 21% of over 250 industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Lam Research Corporation (LRCX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).