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KLA (KLAC) Dips More Than Broader Markets: What You Should Know

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KLA (KLAC - Free Report) closed the most recent trading day at $354.02, moving -1.81% from the previous trading session. This change lagged the S&P 500's daily loss of 0.93%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.17%.

Coming into today, shares of the maker of equipment for manufacturing semiconductors had gained 12.44% in the past month. In that same time, the Computer and Technology sector lost 12.29%, while the S&P 500 gained 6.31%.

KLA will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2022. In that report, analysts expect KLA to post earnings of $5.46 per share. This would mark year-over-year growth of 23.25%. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 25.69% from the year-ago period.

It is also important to note the recent changes to analyst estimates for KLA. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.95% lower. KLA is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note KLA's current valuation metrics, including its Forward P/E ratio of 14.89. This valuation marks a discount compared to its industry's average Forward P/E of 15.15.

It is also worth noting that KLAC currently has a PEG ratio of 0.88. 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 1.93 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 170, which puts it in the bottom 33% 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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