Lam Research (LRCX) Dips More Than Broader Market: What You Should Know

In the latest trading session, Lam Research (LRCX) closed at $306.76, marking a -2.09% move from the previous day. This change lagged the S&P 500's 0.19% loss on the day. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Coming into today, shares of the semiconductor equipment maker had lost 19.47% in the past month. In that same time, the Computer and Technology sector lost 4.32%, while the S&P 500 gained 0.55%.

Investors will be eagerly watching for the performance of Lam Research in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 29, 2026. The company is forecasted to report an EPS of $1.69, showcasing a 27.07% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $6.67 billion, indicating a 29.04% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.68 per share and a revenue of $23.19 billion, representing changes of +37.2% and +25.78%, respectively, from the prior year.

Any recent changes to analyst estimates for Lam Research should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.84% higher within the past month. Lam Research currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 39.59. This expresses a discount compared to the average Forward P/E of 43.65 of its industry.

Meanwhile, LRCX's PEG ratio is currently 1.86. 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 average PEG ratio for the Electronics - Semiconductors industry stood at 1.69 at the close of the market yesterday.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 17% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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This article originally published on Zacks Investment Research (zacks.com).

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