KLA (KLAC) Outpaces Stock Market Gains: What You Should Know
KLA (KLAC) closed at $696.87 in the latest trading session, marking a +1.23% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.86%. Elsewhere, the Dow gained 1.22%, while the tech-heavy Nasdaq added 0.51%.
The the stock of maker of equipment for manufacturing semiconductors has risen by 1.6% in the past month, lagging the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 2.84%.
Investors will be eagerly watching for the performance of KLA in its upcoming earnings disclosure. On that day, KLA is projected to report earnings of $5.08 per share, which would represent a year-over-year decline of 7.47%. Meanwhile, our latest consensus estimate is calling for revenue of $2.3 billion, down 5.37% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $22.74 per share and revenue of $9.62 billion, which would represent changes of -10.37% and -8.32%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for KLA. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.33% lower. Right now, KLA possesses a Zacks Rank of #3 (Hold).
With respect to valuation, KLA is currently being traded at a Forward P/E ratio of 30.27. For comparison, its industry has an average Forward P/E of 23.48, which means KLA is trading at a premium to the group.
Also, we should mention that KLAC has a PEG ratio of 3.34. 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 industry had an average PEG ratio of 2.5 as trading concluded yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 203, finds itself in the bottom 20% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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KLA Corporation (KLAC) : Free Stock Analysis Report
