Lam Research (LRCX) wins but lags in the market: what you need to know

IIn the last trading session, Lam Research (LRCX) closed at $ 705.96, marking a movement of + 0.94% from the previous day. This change was smaller than the S&P 500’s 0.96% gain on the day. At the same time, the Dow Jones rose 0.61% and the highly technological Nasdaq lost 0.04%.

As of today, shares of the semiconductor equipment maker had gained 13.96% over the past month. At the same time, the IT and tech sector lost 1.81%, while the S&P 500 lost 0.21%.

Lam Research will look to show some strength as the next release of its results draws near. In this report, analysts expect Lam Research to post earnings of $ 8.46 per share. This would represent year-over-year growth of 40.3%. Our most recent consensus estimate projects quarterly revenue of $ 4.4 billion, up 27.38% from the previous year.

For the full year, our consensus estimates from Zacks suggest analysts expect earnings of $ 34.29 per share and revenue of $ 17.76 billion. These totals would mark changes of + 25.88% and + 21.44%, respectively, from a year ago.

Investors should also note any recent changes in analyst estimates for Lam Research. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 short-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides an actionable rating system.

Zacks’ ranking system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable, externally verified track record of success, with the No.1 stocks generating an average annual return of + 25% since 1988. The Zacks Consensus EPS estimate has remained stagnant over the past month. Lam Research is currently a Zacks Rank # 2 (Buy).

Digging into the valuation, Lam Research currently has a forward P / E ratio of 20.39. This represents a premium to its industry’s average forward P / E of 20.19.

It should also be noted that LRCX currently has a PEG ratio of 1.2. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. Semiconductor Equipment – Wafer-making stocks have, on average, a PEG ratio of 1.46 based on yesterday’s closing prices.

The Semiconductor Equipment – Wafer Manufacturing industry belongs to the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which places it in the top 29% of 250+ industries.

Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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