December 4, 2022

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It's the Technology

Is Lam Research (LRCX) Outperforming Other Computer and Technology Stocks This Year?

Investors focused on the Computer and Technology space have likely heard of Lam Research (LRCX), but is the stock performing well in comparison to the rest of its sector peers? 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 648 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 in 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 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. LRCX is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for LRCX’s full-year earnings has moved 2.53% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.

Our latest available data shows that LRCX has returned about 29.33% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 28.89%. This means that Lam Research is performing better than its sector in terms of year-to-date returns.

Breaking things down more, LRCX is a member of the Semiconductor Equipment – Wafer Fabrication industry, which includes 4 individual companies and currently sits at #62 in the Zacks Industry Rank. This group has gained an average of 65.29% so far this year, so LRCX is slightly underperforming its industry in this area.

Investors in the Computer and Technology sector will want to keep a close eye on LRCX as it attempts to continue its solid performance.

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