In the latest trading session, KLA (KLAC) closed at $316.47, marking a +0.83% move from the previous day. This move outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.46%.
Heading into today, shares of the maker of equipment for manufacturing semiconductors had lost 5.04% over the past month, outpacing the Computer and Technology sector's loss of 8.38% and the S&P 500's loss of 6.69% in that time.
Investors will be hoping for strength from KLA as it approaches its next earnings release. In that report, analysts expect KLA to post earnings of $5.46 per share. This would mark year-over-year growth of 23.25%. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 25.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $20.90 per share and revenue of $9.15 billion, which would represent changes of +43.64% and +32.2%, respectively, from the prior year.
Investors should also note any 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has moved 0.08% lower. KLA is currently a Zacks Rank #3 (Hold).
In terms of valuation, KLA is currently trading at a Forward P/E ratio of 15.02. Its industry sports an average Forward P/E of 15.47, so we one might conclude that KLA is trading at a discount comparatively.
Also, we should mention that KLAC has a PEG ratio of 0.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.77 at yesterday's closing price.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.