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Kulicke and Soffa (KLIC) Outpaces Stock Market Gains: What You Should Know

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Kulicke and Soffa (KLIC - Free Report) closed the most recent trading day at $50.69, moving +4.56% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.74%.

Coming into today, shares of the semiconductor equipment maker had lost 13.74% in the past month. In that same time, the Computer and Technology sector gained 3.03%, while the S&P 500 gained 3.21%.

In that report, analysts expect KLIC to post earnings of $1.04 per share. This would mark year-over-year growth of 395.24%. Meanwhile, our latest consensus estimate is calling for revenue of $340 million, up 125.99% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.29 per share and revenue of $1.29 billion, which would represent changes of +351.58% and +106.65%, respectively, from the prior year.

Any recent changes to analyst estimates for KLIC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 30.84% higher. KLIC is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, KLIC is holding a Forward P/E ratio of 11.31. Its industry sports an average Forward P/E of 18.2, so we one might conclude that KLIC is trading at a discount comparatively.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% 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.

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