In the latest close session, Lam Research (LRCX) was down 2.08% at $313.74. The stock trailed the S&P 500, which registered a daily loss of 0.48%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.64%.
The stock of semiconductor equipment maker has risen by 2.89% in the past month, leading the Computer and Technology sector's gain of 0.4% and the S&P 500's loss of 0.97%.
Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.15, indicating a 70.63% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.1 billion, up 52.1% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.33 per share and a revenue of $34.48 billion, signifying shifts of +60.59% and +48.42%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lam Research. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Right now, Lam Research possesses a Zacks Rank of #2 (Buy).
With respect to valuation, Lam Research is currently being traded at a Forward P/E ratio of 34.35. This indicates a discount in contrast to its industry's Forward P/E of 35.81.
It's also important to note that LRCX currently trades at a PEG ratio of 1.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 1.27.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 19% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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