In the latest trading session, Lam Research (LRCX) closed at $610.93, marking a -0.21% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.38%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Heading into today, shares of the semiconductor equipment maker had gained 18.7% over the past month, outpacing the Computer and Technology sector's gain of 11.14% and the S&P 500's gain of 3.78% in that time.
Wall Street will be looking for positivity from Lam Research as it approaches its next earnings report date. On that day, Lam Research is projected to report earnings of $5.03 per share, which would represent a year-over-year decline of 43.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.12 billion, down 32.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $33.19 per share and revenue of $17.37 billion. These totals would mark changes of +0.21% and +0.81%, respectively, from last year.
Any recent changes to analyst estimates for Lam Research should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. Lam Research currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Lam Research currently has a Forward P/E ratio of 18.45. This represents a discount compared to its industry's average Forward P/E of 19.75.
We can also see that LRCX currently has a PEG ratio of 7.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 3.4 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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