Advertisement
Singapore markets closed
  • Straits Times Index

    3,471.16
    -18.41 (-0.53%)
     
  • S&P 500

    5,555.43
    -32.84 (-0.59%)
     
  • Dow

    41,023.51
    -174.57 (-0.42%)
     
  • Nasdaq

    17,819.65
    -177.27 (-0.99%)
     
  • Bitcoin USD

    63,874.90
    -1,487.45 (-2.28%)
     
  • CMC Crypto 200

    1,320.74
    -8.77 (-0.66%)
     
  • FTSE 100

    8,211.84
    +24.38 (+0.30%)
     
  • Gold

    2,468.10
    +8.20 (+0.33%)
     
  • Crude Oil

    82.79
    -0.06 (-0.07%)
     
  • 10-Yr Bond

    4.1670
    +0.0210 (+0.51%)
     
  • Nikkei

    40,126.35
    -971.34 (-2.36%)
     
  • Hang Seng

    17,778.41
    +39.00 (+0.22%)
     
  • FTSE Bursa Malaysia

    1,633.81
    +0.27 (+0.02%)
     
  • Jakarta Composite Index

    7,321.07
    +96.85 (+1.34%)
     
  • PSE Index

    6,705.01
    +17.30 (+0.26%)
     

Lam Research (LRCX) Suffers a Larger Drop Than the General Market: Key Insights

Lam Research (LRCX) ended the recent trading session at $962.19, demonstrating a -0.98% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.02% for the day. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.09%.

The semiconductor equipment maker's stock has climbed by 6.4% in the past month, falling short of the Computer and Technology sector's gain of 8.04% and outpacing the S&P 500's gain of 4.59%.

Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. The company is forecasted to report an EPS of $7.52, showcasing a 25.75% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.81 billion, reflecting a 18.91% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $29.67 per share and revenue of $14.84 billion, which would represent changes of -13.17% and -14.83%, respectively, from the prior year.

ADVERTISEMENT

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lam Research. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.17% higher within the past month. Lam Research is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Lam Research is presently being traded at a Forward P/E ratio of 32.75. Its industry sports an average Forward P/E of 33.09, so one might conclude that Lam Research is trading at a discount comparatively.

Also, we should mention that LRCX has a PEG ratio of 3.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Semiconductor Equipment - Wafer Fabrication industry stood at 3.14 at the close of the market yesterday.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 219, placing it within the bottom 14% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Lam Research Corporation (LRCX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research