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Is Lam Research (LRCX) Outperforming Other Computer and Technology Stocks 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. Is Lam Research (LRCX - Free Report) one of those stocks right now? 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 a member of our Computer and Technology group, which includes 633 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics 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 8.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, LRCX has returned 67% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 41.5% on a year-to-date basis. This means that Lam Research is outperforming the sector as a whole this year.

One other Computer and Technology stock that has outperformed the sector so far this year is Super Micro Computer (SMCI - Free Report) . The stock is up 243.7% year-to-date.

For Super Micro Computer, the consensus EPS estimate for the current year has increased 73.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Lam Research belongs to the Semiconductor Equipment - Wafer Fabrication industry, a group that includes 4 individual stocks and currently sits at #30 in the Zacks Industry Rank. On average, this group has gained an average of 38.1% so far this year, meaning that LRCX is performing better in terms of year-to-date returns.

On the other hand, Super Micro Computer belongs to the Computer- Storage Devices industry. This 7-stock industry is currently ranked #58. The industry has moved +62.4% year to date.

Lam Research and Super Micro Computer 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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