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KLA (KLAC) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, KLA (KLAC - Free Report) closed at $323.27, marking a -1.68% move from the previous day. This change lagged the S&P 500's 1.3% loss on the day. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.45%.
Heading into today, shares of the maker of equipment for manufacturing semiconductors had lost 15.63% over the past month, lagging the Computer and Technology sector's loss of 8.81% and the S&P 500's loss of 5.33% in that time.
Wall Street will be looking for positivity from KLA as it approaches its next earnings report date. The company is expected to report EPS of $4.86, up 26.23% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.22 billion, up 22.81% from the year-ago period.
KLAC's full-year Zacks Consensus Estimates are calling for earnings of $20.52 per share and revenue of $9.02 billion. These results would represent year-over-year changes of +41.03% and +30.44%, respectively.
Investors might also notice recent changes to analyst estimates for KLA. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. KLA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, KLA is currently trading at a Forward P/E ratio of 16.02. For comparison, its industry has an average Forward P/E of 16.02, which means KLA is trading at a no noticeable deviation to the group.
Also, we should mention that KLAC has a PEG ratio of 0.8. 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 industry currently had an average PEG ratio of 1.83 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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KLA (KLAC) Dips More Than Broader Markets: What You Should Know
In the latest trading session, KLA (KLAC - Free Report) closed at $323.27, marking a -1.68% move from the previous day. This change lagged the S&P 500's 1.3% loss on the day. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.45%.
Heading into today, shares of the maker of equipment for manufacturing semiconductors had lost 15.63% over the past month, lagging the Computer and Technology sector's loss of 8.81% and the S&P 500's loss of 5.33% in that time.
Wall Street will be looking for positivity from KLA as it approaches its next earnings report date. The company is expected to report EPS of $4.86, up 26.23% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.22 billion, up 22.81% from the year-ago period.
KLAC's full-year Zacks Consensus Estimates are calling for earnings of $20.52 per share and revenue of $9.02 billion. These results would represent year-over-year changes of +41.03% and +30.44%, respectively.
Investors might also notice recent changes to analyst estimates for KLA. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. KLA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, KLA is currently trading at a Forward P/E ratio of 16.02. For comparison, its industry has an average Forward P/E of 16.02, which means KLA is trading at a no noticeable deviation to the group.
Also, we should mention that KLAC has a PEG ratio of 0.8. 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 industry currently had an average PEG ratio of 1.83 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.