Are Computer and Technology Stocks Lagging Lam Research (LRCX) 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. Has Lam Research (LRCX) been one of those stocks this year? 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.
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View Offer Powered by Money.com - Yahoo may earn commission from the links above.Lam Research is a member of our Computer and Technology group, which includes 608 different companies and currently sits at #5 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 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. 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 7.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, LRCX has returned 32.9% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 4.5% on average. This means that Lam Research is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Couchbase, Inc. (BASE), has outperformed the sector so far this year. The stock's year-to-date return is 54.7%.
For Couchbase, Inc., the consensus EPS estimate for the current year has increased 6.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Lam Research belongs to the Electronics - Semiconductors industry, which includes 45 individual stocks and currently sits at #93 in the Zacks Industry Rank. This group has gained an average of 11.2% so far this year, so LRCX is performing better in this area.
On the other hand, Couchbase, Inc. belongs to the Internet - Software industry. This 169-stock industry is currently ranked #48. The industry has moved +14.1% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Lam Research and Couchbase, Inc. as they could maintain their solid performance.
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Story ContinuesLam Research Corporation (LRCX) : Free Stock Analysis Report
Couchbase, Inc. (BASE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
This year has not been a particularly favorable one for many computer and technology stocks, yet Lam Research (LRCX) remains resilient amidst the market's林木， distinguishing itself by slight declines compared to its peers—demonstrating steadfastness in what is otherwise an underperformant sector.”
Although Lam Research (LRCX) has shown resilience, generally computer and technology stocks have underperformed this year compared to the broader market.
Despite the overall bullish market sentiment, several computer and technology stocks such as Lam Research (LRCX) are reportedly underperforming this year compared to broader indexes.
This year, while Lam Research (LRCX) has notably outperformed the broader computer and technology sector on a YTD basis with gains exceeding 20%, leading indicators suggest that smaller players in this vertical continue to lag behind LCRM's steady climb.
Despite the broad sector's oscillating trends, Lam Research (LRCX) seems to have outperformed other computer and technology stocks this year due in part its reliable supply chain management amid production disruption.
