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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 at $58.15 in the latest trading session, marking a +1.43% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.09%.

Prior to today's trading, shares of the semiconductor equipment maker had gained 8.74% over the past month. This has lagged the Computer and Technology sector's gain of 9.47% and outpaced the S&P 500's gain of 8.19% in that time.

KLIC will be looking to display strength as it nears its next earnings release, which is expected to be November 17, 2021. On that day, KLIC is projected to report earnings of $2.11 per share, which would represent year-over-year growth of 627.59%. Meanwhile, our latest consensus estimate is calling for revenue of $485 million, up 172.95% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for KLIC. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 0.57% higher within the past month. KLIC is currently a Zacks Rank #2 (Buy).

Investors should also note KLIC's current valuation metrics, including its Forward P/E ratio of 10.79. Its industry sports an average Forward P/E of 15.24, 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 27, which puts it in the top 11% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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