The most recent trading session ended with KLA (KLAC) standing at $690.70, reflecting a +0.99% shift from the previouse trading day’s closing. The stock outperformed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.82%.
The maker of equipment for manufacturing semiconductors’s stock has climbed by 3.41% in the past month, exceeding the Computer and Technology sector’s gain of 1.16% and the S&P 500’s gain of 1.76%.
Market participants will be closely following the financial results of KLA in its upcoming release. The company’s upcoming EPS is projected at $5.26, signifying a 4.19% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.3 billion, down 5.37% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $22.82 per share and a revenue of $9.57 billion, representing changes of -10.05% and -8.85%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KLA. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, KLA possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 29.97. This denotes a premium relative to the industry’s average Forward P/E of 22.98.
It is also worth noting that KLAC currently has a PEG ratio of 3.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As the market closed yesterday, the Electronics – Miscellaneous Products industry was having an average PEG ratio of 2.47.
The Electronics – Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow KLAC in the coming trading sessions, be sure to utilize Zacks.com.
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KLA Corporation (KLAC) : Free Stock Analysis Report
