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KLA (KLAC) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, KLA (KLAC - Free Report) closed at $435.09, marking a +1.16% move from the previous day. This change outpaced the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.
Heading into today, shares of the maker of equipment for manufacturing semiconductors had gained 7.34% over the past month, outpacing the Computer and Technology sector's gain of 1.46% and the S&P 500's gain of 4.56% in that time.
Investors will be hoping for strength from KLA as it approaches its next earnings release. On that day, KLA is projected to report earnings of $4.45 per share, which would represent year-over-year growth of 37.35%. Meanwhile, our latest consensus estimate is calling for revenue of $2.33 billion, up 40.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $21.17 per share and revenue of $9.18 billion, which would represent changes of +45.5% and +32.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for KLA. These revisions help to show the ever-changing nature of near-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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. KLA is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, KLA is holding a Forward P/E ratio of 20.32. Its industry sports an average Forward P/E of 23.19, so we one might conclude that KLA is trading at a discount comparatively.
Investors should also note that KLAC has a PEG ratio of 1.26 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Electronics - Miscellaneous Products stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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 KLAC in the coming trading sessions, be sure to utilize Zacks.com.
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KLA (KLAC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, KLA (KLAC - Free Report) closed at $435.09, marking a +1.16% move from the previous day. This change outpaced the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.
Heading into today, shares of the maker of equipment for manufacturing semiconductors had gained 7.34% over the past month, outpacing the Computer and Technology sector's gain of 1.46% and the S&P 500's gain of 4.56% in that time.
Investors will be hoping for strength from KLA as it approaches its next earnings release. On that day, KLA is projected to report earnings of $4.45 per share, which would represent year-over-year growth of 37.35%. Meanwhile, our latest consensus estimate is calling for revenue of $2.33 billion, up 40.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $21.17 per share and revenue of $9.18 billion, which would represent changes of +45.5% and +32.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for KLA. These revisions help to show the ever-changing nature of near-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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. KLA is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, KLA is holding a Forward P/E ratio of 20.32. Its industry sports an average Forward P/E of 23.19, so we one might conclude that KLA is trading at a discount comparatively.
Investors should also note that KLAC has a PEG ratio of 1.26 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Electronics - Miscellaneous Products stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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 KLAC in the coming trading sessions, be sure to utilize Zacks.com.