Lam Research (LRCX) Stock Sinks As Market Gains: Here's Why

The latest trading session saw Lam Research (LRCX) ending at $77.67, denoting a -0.41% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.01%, and the technology-dominated Nasdaq saw an increase of 0.46%.Coming into today, shares of the semiconductor equipment maker had lost 6.42% in the past month. In that same time, the Computer and Technology sector lost 5.94%, while the S&P 500 lost 3.59%.The investment community will be closely monitoring the performance of Lam Research in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1, reflecting a 28.21% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.64 billion, showing a 22.31% escalation compared to the year-ago quarter.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.73 per share and a revenue of $17.71 billion, indicating changes of +24.75% and +18.81%, respectively, from the former year.Any recent changes to analyst estimates for Lam Research should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Lam Research is currently a Zacks Rank #3 (Hold).In terms of valuation, Lam Research is currently trading at a Forward P/E ratio of 20.92. Its industry sports an average Forward P/E of 25.72, so one might conclude that Lam Research is trading at a discount comparatively.One should further note that LRCX currently holds a PEG ratio of 1.26. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.58.The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.The Zacks Industry Rank is ordered 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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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