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

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In the latest trading session, Kulicke and Soffa (KLIC - Free Report) closed at $64.59, marking a -1.19% move from the previous day. This change lagged the S&P 500's 0.06% loss on the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.

Coming into today, shares of the semiconductor equipment maker had gained 11.74% in the past month. In that same time, the Computer and Technology sector gained 4.06%, while the S&P 500 gained 5.76%.

Kulicke and Soffa will be looking to display strength as it nears its next earnings release. On that day, Kulicke and Soffa is projected to report earnings of $1.92 per share, which would represent year-over-year growth of 123.26%. Meanwhile, our latest consensus estimate is calling for revenue of $460 million, up 71.73% from the prior-year quarter.

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.

It is also important to note the recent changes to analyst estimates for Kulicke and Soffa. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Kulicke and Soffa currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Kulicke and Soffa is holding a Forward P/E ratio of 11.37. For comparison, its industry has an average Forward P/E of 14.59, which means Kulicke and Soffa is trading at a discount to the group.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.

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

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