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Are Computer and Technology Stocks Lagging Lam Research (LRCX) This Year?

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Lam Research (LRCX - Free Report) been one of those stocks this year? 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 608 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Lam Research 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 7.4% 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 22.3% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 1.8%. This means that Lam Research is performing better than its sector in terms of year-to-date returns.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Couchbase, Inc. (BASE - Free Report) . The stock has returned 27.4% year-to-date.

Over the past three months, Couchbase, Inc.'s consensus EPS estimate for the current year has increased 6.6%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Lam Research belongs to the Electronics - Semiconductors industry, a group that includes 45 individual stocks and currently sits at #82 in the Zacks Industry Rank. On average, stocks in this group have gained 3% this year, meaning that LRCX is performing better in terms of year-to-date returns.

Couchbase, Inc. however, belongs to the Internet - Software industry. Currently, this 169-stock industry is ranked #54. The industry has moved +13.2% so far this year.

Lam Research and Couchbase, Inc. could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.


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