In a recent analysis featured on CNBC Pro, Josh Brown and Sean Russo from Ritholtz Wealth Management delve into the performance of select stocks that have exhibited consistent strength despite market fluctuations. Their focus is on stocks showcasing robust underlying buying pressure and favorable technical setups. Over the past ten months, they have observed varied performance among the stocks on their radar, with some failing to maintain their upward trajectories and others continuing to thrive.
Among the standout performers are KLA Corp (KLAC) and Lam Research Corp (LRCX), both of which have shown impressive growth and resilience. KLA, a provider of services and equipment for semiconductor manufacturing, has been particularly remarkable. After achieving a gain of 56% in 2023, along with continued increases in subsequent years, KLA has further surged approximately 42% year-to-date in 2026. The company’s latest guidance suggests gross margins improving to 61.75%, signaling potential for further success.
Brown emphasizes the importance of patience for investors, noting that many may be tempted to take profits after substantial gains. However, KLA’s upward momentum appears to be sustainable. It recently completed a multi-month consolidation phase, indicating that the stock may be poised to clear resistance levels around $1,737 — the last vestige of supply from a previous sell-off.
Similarly, Lam Research has seen exuberant growth, with its stock skyrocketing 139% in the past year and an additional 51% increase this year alone. The company expects revenue and profit to double over the next five years, fueled by significant investments in manufacturing capacity. Notably, Lam Research had a history of attempting to acquire KLA, showcasing its ambitious strategies in the semiconductor space.
Lam Research’s recent performance indicates it is on a path to new highs, following a digesting phase that helped strengthen its position. The momentum remains positive, as evidenced by the relative strength index (RSI) trending higher, suggesting the stock is not yet exhausted.
Both stocks are indicative of a broader trend in the semiconductor sector, where companies are increasingly recognized for their potential to lead the market. With a strategy based on meticulous research into the best stocks, Ritholtz Wealth Management is set to launch an asset management initiative linked to their findings, offering subscribers an opportunity to engage with their curated portfolio.
As the markets continue to evolve, both KLA and Lam Research stand as exemplars of how strategic patience and informed decision-making can yield substantial rewards for investors.
