Yahoo Finance Lam Research (LRCX) Outpaces Stock Market Gains: What You Should Know
Lam Research (LRCX) closed at $611 in the latest trading session, marking a +0.78% move from the prior day. This change outpaced the S&P 500's 0.07% gain on the day.
On that day, LRCX is projected to report earnings of $7.52 per share, which would represent year-over-year growth of 57.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4 billion, up 43.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $26.71 per share and revenue of $14.49 billion, which would represent changes of +67.46% and +44.22%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for LRCX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.65% higher. LRCX is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, LRCX currently has a Forward P/E ratio of 22.7. Its industry sports an average Forward P/E of 22.12, so we one might conclude that LRCX is trading at a premium comparatively.
Meanwhile, LRCX's PEG ratio is currently 0.69. 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. LRCX's industry had an average PEG ratio of 1.39 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 8, putting it in the top 4% of all 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.
To follow LRCX in the coming trading sessions, be sure to utilize Zacks.com.
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