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KLA (KLAC) Gains As Market Dips: What You Should Know

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KLA (KLAC - Free Report) closed the most recent trading day at $418.73, moving +0.44% from the previous trading session. This change outpaced the S&P 500's 0.14% loss on the day. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.02%.

Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had gained 1.51% over the past month. This has outpaced the Computer and Technology sector's loss of 5.82% and the S&P 500's loss of 0.13% in that time.

Investors will be hoping for strength from KLA as it approaches its next earnings release, which is expected to be January 27, 2022. The company is expected to report EPS of $5.43, up 67.59% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.33 billion, up 40.86% from the year-ago period.

KLAC's full-year Zacks Consensus Estimates are calling for earnings of $21.18 per share and revenue of $9.17 billion. These results would represent year-over-year changes of +45.57% and +32.61%, respectively.

Investors might also notice recent changes to analyst estimates for KLA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. KLA is currently a Zacks Rank #3 (Hold).

Investors should also note KLA's current valuation metrics, including its Forward P/E ratio of 19.69. This represents a discount compared to its industry's average Forward P/E of 21.45.

Also, we should mention that KLAC has a PEG ratio of 1.22. 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. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.85 at yesterday's closing price.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.

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