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

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Kulicke and Soffa (KLIC - Free Report) closed the most recent trading day at $55.96, moving -0.9% from the previous trading session. This move lagged the S&P 500's daily gain of 0.47%.

Prior to today's trading, shares of the semiconductor equipment maker had gained 28.66% over the past month. This has outpaced the Computer and Technology sector's gain of 2.06% and the S&P 500's loss of 0.12% in that time.

KLIC will be looking to display strength as it nears its next earnings release. In that report, analysts expect KLIC to post earnings of $1.36 per share. This would mark year-over-year growth of 547.62%. Meanwhile, our latest consensus estimate is calling for revenue of $400 million, up 165.87% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.70 per share and revenue of $1.35 billion. These totals would mark changes of +394.74% and +116.63%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for KLIC. These revisions help to show the ever-changing nature of 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. KLIC currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note KLIC's current valuation metrics, including its Forward P/E ratio of 12.02. This represents a discount compared to its industry's average Forward P/E of 18.2.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% 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 KLIC in the coming trading sessions, be sure to utilize Zacks.com.


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