In the latest trading session, Lam Research (LRCX) closed at $551.73, marking a -0.75% move from the previous day. This move lagged the S&P 500’s daily gain of 0.41%.
Heading into today, shares of the semiconductor equipment maker had lost 6.29% over the past month, outpacing the Computer and Technology sector’s loss of 7.83% and lagging the S&P 500’s loss of 4.08% in that time.
Wall Street will be looking for positivity from LRCX as it approaches its next earnings report date. This is expected to be October 20, 2021. In that report, analysts expect LRCX to post earnings of $8.13 per share. This would mark year-over-year growth of 43.39%. Our most recent consensus estimate is calling for quarterly revenue of $4.3 billion, up 35.46% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $33.45 per share and revenue of $17.62 billion. These totals would mark changes of +22.8% and +20.44%, respectively, from last year.
Any recent changes to analyst estimates for LRCX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. LRCX is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, LRCX is holding a Forward P/E ratio of 16.62. Its industry sports an average Forward P/E of 18.89, so we one might conclude that LRCX is trading at a discount comparatively.
Meanwhile, LRCX’s PEG ratio is currently 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Semiconductor Equipment – Wafer Fabrication was holding an average PEG ratio of 0.98 at yesterday’s closing price.
The Semiconductor Equipment – Wafer Fabrication industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% 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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