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Is Lam Research (LRCX) Stock Outpacing Its Computer and Technology Peers This Year?

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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Lam Research (LRCX - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Lam Research is one of 615 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. LRCX is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for LRCX's full-year earnings has moved 7.49% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that LRCX has returned about 49.69% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 32.06%. This shows that Lam Research is outperforming its peers so far this year.

Looking more specifically, LRCX belongs to the Semiconductor Equipment - Wafer Fabrication industry, which includes 4 individual stocks and currently sits at #37 in the Zacks Industry Rank. Stocks in this group have gained about 41.51% so far this year, so LRCX is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to LRCX as it looks to continue its solid performance.


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