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Kulicke and Soffa (KLIC) Dips More Than Broader Markets: What You Should Know

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Kulicke and Soffa (KLIC - Free Report) closed the most recent trading day at $58.54, moving -0.22% from the previous trading session. This move lagged the S&P 500's daily loss of 0.1%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.1%.

Prior to today's trading, shares of the semiconductor equipment maker had gained 0.89% over the past month. This has lagged the Computer and Technology sector's gain of 3.66% and the S&P 500's gain of 4.4% in that time.

Kulicke and Soffa will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.92, up 123.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $460 million, up 71.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.75 per share and revenue of $1.54 billion. These totals would mark changes of -6.35% and +1.5%, respectively, from last year.

Any recent changes to analyst estimates for Kulicke and Soffa should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Kulicke and Soffa is currently a Zacks Rank #2 (Buy).

Investors should also note Kulicke and Soffa's current valuation metrics, including its Forward P/E ratio of 10.2. Its industry sports an average Forward P/E of 15.04, so we one might conclude that Kulicke and Soffa 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 27, putting it in the top 11% 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.

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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