In the latest trading session, KLA (KLAC) closed at $313.17, marking a -1.16% move from the previous day. This change lagged the S&P 500's 1.15% loss on the day. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.37%.
Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had lost 5.04% over the past month. This has lagged the Computer and Technology sector's loss of 4.74% and was narrower than the S&P 500's loss of 5.08% in that time.
KLA will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2022. The company is expected to report EPS of $5.46, up 23.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 25.69% from the year-ago period.
Investors might also notice recent changes to analyst estimates for KLA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.34% lower. KLA is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 13.07 right now. Its industry sports an average Forward P/E of 13.07, so we one might conclude that KLA is trading at a no noticeable deviation comparatively.
Investors should also note that KLAC has a PEG ratio of 0.77 right now. 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. KLAC's industry had an average PEG ratio of 1.76 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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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