Lam Research (LRCX) Outpaces Stock Market Gains: What You Should Know

In the latest close session, Lam Research (LRCX) was up +1.7% at $107.36. The stock's change was more than the S&P 500's daily gain of 0.3%. Meanwhile, the Dow experienced a drop of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.03%. Shares of the semiconductor equipment maker witnessed a gain of 0.28% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.1%, and the S&P 500's gain of 2.09%.Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. In that report, analysts expect Lam Research to post earnings of $1.21 per share. This would mark year-over-year growth of 40.7%. Meanwhile, our latest consensus estimate is calling for revenue of $5.22 billion, up 25.22% from the prior-year quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.42 per share and a revenue of $19.66 billion, representing changes of +6.76% and +6.66%, respectively, from the prior year. Investors should also take note of any recent adjustments to analyst estimates 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 business outlook. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 has moved 0.82% higher within the past month. Lam Research currently has a Zacks Rank of #3 (Hold). Investors should also note Lam Research's current valuation metrics, including its Forward P/E ratio of 23.91. This represents a discount compared to its industry average Forward P/E of 29.82. Investors should also note that LRCX has a PEG ratio of 1.36 right now. 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. LRCX's industry had an average PEG ratio of 1.9 as of yesterday's close. The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 22% 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 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks