In the latest trading session, KLA (KLAC) closed at $335.25, marking a -0.55% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 1.07%, while the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the maker of equipment for manufacturing semiconductors had lost 15.17% over the past month, lagging the Computer and Technology sector's loss of 5.41% and the S&P 500's loss of 3.49% in that time.
Investors will be hoping for strength from KLA as it approaches its next earnings release. On that day, KLA is projected to report earnings of $6.22 per share, which would represent year-over-year growth of 34.05%. Our most recent consensus estimate is calling for quarterly revenue of $2.59 billion, up 24.48% from the year-ago period.
KLAC's full-year Zacks Consensus Estimates are calling for earnings of $24.87 per share and revenue of $10.39 billion. These results would represent year-over-year changes of +17.59% and +12.82%, respectively.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. KLA is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 13.55 right now. This valuation marks a discount compared to its industry's average Forward P/E of 17.1.
It is also worth noting that KLAC currently has a PEG ratio of 1.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. 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 206, putting it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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