In the latest trading session, Lam Research (LRCX) closed at $100.11, marking a -3.82% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.64% for the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.15%.
The semiconductor equipment maker's shares have seen an increase of 9.75% over the last month, surpassing the Computer and Technology sector's gain of 2.91% and the S&P 500's gain of 1.91%.
The upcoming earnings release of Lam Research will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.21, reflecting a 40.7% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $5.22 billion, reflecting a 25.22% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.42 per share and a revenue of $19.66 billion, signifying shifts of +6.76% and +6.66%, 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 revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 witnessed a 10.49% increase. Lam Research is currently a Zacks Rank #3 (Hold).
In terms of valuation, Lam Research is presently being traded at a Forward P/E ratio of 23.57. This indicates a discount in contrast to its industry's Forward P/E of 30.53.
We can additionally observe that LRCX currently boasts a PEG ratio of 1.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics – Semiconductors industry currently had an average PEG ratio of 1.88 as of yesterday's close.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 16% of all 250+ industries.
