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 632 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. LRCX is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for LRCX's full-year earnings has moved 4.80% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, LRCX has gained about 10.46% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 4.99% on a year-to-date basis. This shows that Lam Research is outperforming its peers so far this year.
To break things down more, LRCX belongs to the Semiconductor Equipment - Wafer Fabrication industry, a group that includes 5 individual companies and currently sits at #1 in the Zacks Industry Rank. This group has gained an average of 12.11% so far this year, so LRCX is slightly underperforming its industry in this area.
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.