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KLA (KLAC) Gains But Lags Market: What You Should Know
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In the latest trading session, KLA (KLAC - Free Report) closed at $410.69, marking a +0.32% move from the previous day. This move lagged the S&P 500's daily gain of 0.96%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.04%.
Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had lost 0.83% over the past month. This has was narrower than the Computer and Technology sector's loss of 1.81% and lagged the S&P 500's loss of 0.21% in that time.
Wall Street will be looking for positivity from KLA as it approaches its next earnings report date. On that day, KLA is projected to report earnings of $5.44 per share, which would represent year-over-year growth of 67.9%. Our most recent consensus estimate is calling for quarterly revenue of $2.33 billion, up 40.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.19 per share and revenue of $9.19 billion. These totals would mark changes of +45.64% and +32.78%, respectively, from last year.
Any recent changes to analyst estimates for KLA should also be noted by investors. 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. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KLA is currently a Zacks Rank #2 (Buy).
In terms of valuation, KLA is currently trading at a Forward P/E ratio of 19.32. Its industry sports an average Forward P/E of 22.15, so we one might conclude that KLA is trading at a discount comparatively.
It is also worth noting that KLAC currently has a PEG ratio of 1.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Miscellaneous Products was holding an average PEG ratio of 2.01 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 118, putting it in the top 47% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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KLA (KLAC) Gains But Lags Market: What You Should Know
In the latest trading session, KLA (KLAC - Free Report) closed at $410.69, marking a +0.32% move from the previous day. This move lagged the S&P 500's daily gain of 0.96%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.04%.
Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had lost 0.83% over the past month. This has was narrower than the Computer and Technology sector's loss of 1.81% and lagged the S&P 500's loss of 0.21% in that time.
Wall Street will be looking for positivity from KLA as it approaches its next earnings report date. On that day, KLA is projected to report earnings of $5.44 per share, which would represent year-over-year growth of 67.9%. Our most recent consensus estimate is calling for quarterly revenue of $2.33 billion, up 40.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.19 per share and revenue of $9.19 billion. These totals would mark changes of +45.64% and +32.78%, respectively, from last year.
Any recent changes to analyst estimates for KLA should also be noted by investors. 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. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KLA is currently a Zacks Rank #2 (Buy).
In terms of valuation, KLA is currently trading at a Forward P/E ratio of 19.32. Its industry sports an average Forward P/E of 22.15, so we one might conclude that KLA is trading at a discount comparatively.
It is also worth noting that KLAC currently has a PEG ratio of 1.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Miscellaneous Products was holding an average PEG ratio of 2.01 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 118, putting it in the top 47% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.