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

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. Is Lam Research (LRCX) one of those stocks right now? 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 613 different companies and currently sits at #3 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 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. Lam Research is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for LRCX's full-year earnings has moved 20.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, LRCX has gained about 79.7% so far this year. At the same time, Computer and Technology stocks have gained an average of 18.2%. This means that Lam Research is performing better than its sector in terms of year-to-date returns.

One other Computer and Technology stock that has outperformed the sector so far this year is CTS (CTS). The stock is up 33.4% year-to-date.

Over the past three months, CTS' consensus EPS estimate for the current year has increased 11.9%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Lam Research is a member of the Electronics - Semiconductors industry, which includes 49 individual companies and currently sits at #43 in the Zacks Industry Rank. On average, stocks in this group have gained 27.5% this year, meaning that LRCX is performing better in terms of year-to-date returns.

In contrast, CTS falls under the Electronics - Miscellaneous Components industry. Currently, this industry has 28 stocks and is ranked #44. Since the beginning of the year, the industry has moved -17.4%.

Investors with an interest in Computer and Technology stocks should continue to track Lam Research and CTS. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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