Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Kulicke and Soffa (KLIC - Free Report) closed at $55.50, marking a +0.23% move from the previous day. This move outpaced the S&P 500's daily loss of 0.11%.

Prior to today's trading, shares of the semiconductor equipment maker had gained 10.01% over the past month. This has outpaced the Computer and Technology sector's gain of 7.15% and the S&P 500's gain of 2.23% in that time.

Investors will be hoping for strength from KLIC as it approaches its next earnings release. On that day, KLIC is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 547.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $400 million, up 165.87% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.70 per share and revenue of $1.35 billion, which would represent changes of +394.74% and +116.63%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for KLIC. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. KLIC is currently a Zacks Rank #3 (Hold).

Looking at its valuation, KLIC is holding a Forward P/E ratio of 11.78. Its industry sports an average Forward P/E of 18.23, 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 industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.

To follow KLIC in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Kulicke and Soffa Industries, Inc. (KLIC) - free report >>

Published in