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Lam Research (LRCX) closed the most recent trading day at $1,069.11, moving -0.07% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq appreciated by 0.4%.

The the stock of semiconductor equipment maker has risen by 3.27% in the past month, lagging the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78%.

The investment community will be closely monitoring the performance of Lam Research in its forthcoming earnings report. The company is scheduled to release its earnings on July 31, 2024. The company's earnings per share (EPS) are projected to be $7.52, reflecting a 25.75% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.81 billion, showing a 18.91% escalation compared to the year-ago quarter.

It is also important to note the recent changes to analyst estimates for Lam Research. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Lam Research presently features a Zacks Rank of #2 (Buy).

From a valuation perspective, Lam Research is currently exchanging hands at a Forward P/E ratio of 30.31. Its industry sports an average Forward P/E of 32.52, 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 3.1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 3.14 at yesterday's closing price.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.