Lam Research (LRCX) ended the most recent trading day at $72.84, moving -0.41% from the previous trading session. The stock underperformed the S&P 500 Index, which rose 0.4% on the day. Meanwhile, the Dow Jones Industrial Average rose 0.09%, and the tech-heavy Nasdaq index rose 0.63%.
Shares of the semiconductor equipment maker have lost 7.31% over the past month, lagging the Computer Technology sector’s rise of 4.88% and the S&P 500’s rise of 3.76%.
Investors will be keeping an eye on Lam Research’s performance in its upcoming earnings release. The company’s earnings report is scheduled to be released on October 23, 2024. The company’s earnings per share (EPS) are expected to be $0.80, reflecting an increase of 15.94% from the year-ago period. Meanwhile, our latest consensus estimate is projecting revenue of $4.05 billion, up 16.3% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.23 per share and revenue of $17.18 billion, which would represent changes of +8.03% and +15.25%, respectively, from the prior year.
It is also important for investors to be aware of recent revisions to analyst estimates for Lam Research. Such recent changes usually indicate a change in the status of short-term business trends. As a result, the positive estimate changes indicate that analysts have a favorable outlook on the health and profitability of the company’s business.
Based on our research, we believe these estimate revisions are directly related to near team stock movements. To benefit from this, we have established the Zacks Rank, a proprietary model that considers these estimate changes and provides an investment rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 ranked stocks having an average annual return of +25% since 1988. is producing. Over the past month, the Zacks Consensus EPS estimate has missed by 8.09%. Lam Research currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lam Research is currently trading at a Forward P/E of 22.61. This represents a discount compared to its industry’s average Forward P/E of 27.84.
Further, we note that LRCX currently sports a PEG ratio of 1.68. This popular metric is similar to the widely-known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. As of yesterday’s close, the average PEG ratio for the Semiconductor Equipment – Wafer Fabrication industry was 2.33.
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The semiconductor equipment – wafer manufacturing industry is part of the computer and technology sector. It currently has a Zacks Industry Rank of 107, putting this industry in the top 43% 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 2:1.
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