Lam Research (LRCX) Sees a More Significant Dip Than Broader Market: Some Facts to Know

In the latest close session, Lam Research (LRCX) was down 1.19% at $173.78. The stock's performance was behind the S&P 500's daily loss of 0.14%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 0.24%. Coming into today, shares of the semiconductor equipment maker had gained 13.62% in the past month. In that same time, the Computer and Technology sector gained 0.2%, while the S&P 500 gained 0.94%. Investors will be eagerly watching for the performance of Lam Research in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.15, showcasing a 26.37% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.22 billion, indicating a 19.23% increase compared to the same quarter of the previous year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.79 per share and a revenue of $21.04 billion, representing changes of +15.7% and +14.11%, respectively, from the prior year. Investors might also notice recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. As of now, Lam Research holds a Zacks Rank of #2 (Buy). Digging into valuation, Lam Research currently has a Forward P/E ratio of 36.72. This expresses a premium compared to the average Forward P/E of 36.1 of its industry. One should further note that LRCX currently holds a PEG ratio of 2.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. LRCX's industry had an average PEG ratio of 2.04 as of yesterday's close. The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it 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 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for 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