Lam Research (LRCX) closed the most recent trading day at $286.92, moving -4.71% from the previous trading session. This change lagged the S&P 500's 1.11% loss on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 1.88%.
Coming into today, shares of the semiconductor equipment maker had gained 11.16% in the past month. In that same time, the Computer and Technology sector gained 3.49%, while the S&P 500 gained 2.06%.
Market participants will be closely following the financial results of Lam Research in its upcoming release. The company plans to announce its earnings on October 21, 2026. The company is predicted to post an EPS of $2.17, indicating a 72.22% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.12 billion, indicating a 52.42% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.34 per share and a revenue of $34.46 billion, indicating changes of +60.76% and +48.34%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.19% higher. Right now, Lam Research possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Lam Research has a Forward P/E ratio of 32.23 right now. This expresses a discount compared to the average Forward P/E of 36.3 of its industry.
We can also see that LRCX currently has a PEG ratio of 1.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).