Has Lam Research (LRCX) Outpaced Other Computer and Technology Stocks This Year?
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Lam Research (LRCX) 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? One simple way to answer this question is to take a look at the year-to-date performance of LRCX and the rest of the Computer and Technology group's stocks.
Lam Research is one of 616 companies in the Computer and Technology group. The Computer and Technology group currently sits at #10 within 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. LRCX is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for LRCX's full-year earnings has moved 7.49% higher within the past quarter. 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 26.72% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 23.84% on average. As we can see, Lam Research is performing better than its sector in the calendar year.
Looking more specifically, LRCX belongs to the Semiconductor Equipment - Wafer Fabrication industry, a group that includes 4 individual stocks and currently sits at #35 in the Zacks Industry Rank. Stocks in this group have gained about 20.91% so far this year, so LRCX is performing better this group in terms of year-to-date returns.
LRCX will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.
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