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Are Computer and Technology Stocks Lagging Lam Research (LRCX) 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. Has Lam Research (LRCX - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Lam Research is a member of our Computer and Technology group, which includes 608 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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).

Over the past three months, the Zacks Consensus Estimate for LRCX's full-year earnings has moved 7.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, LRCX has returned 32.9% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 4.5% on average. This means that Lam Research is outperforming the sector as a whole this year.

Another stock in the Computer and Technology sector, Couchbase, Inc. (BASE - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 54.7%.

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

Looking more specifically, Lam Research belongs to the Electronics - Semiconductors industry, which includes 45 individual stocks and currently sits at #93 in the Zacks Industry Rank. This group has gained an average of 11.2% so far this year, so LRCX is performing better in this area.

On the other hand, Couchbase, Inc. belongs to the Internet - Software industry. This 169-stock industry is currently ranked #48. The industry has moved +14.1% year to date.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Lam Research and Couchbase, Inc. as they could maintain their solid performance.


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