We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
KLA (KLAC) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
KLA (KLAC - Free Report) closed the most recent trading day at $371.97, moving -1% from the previous trading session. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.98%.
Coming into today, shares of the maker of equipment for manufacturing semiconductors had lost 3.37% in the past month. In that same time, the Computer and Technology sector gained 2.75%, while the S&P 500 gained 4.59%.
Investors will be hoping for strength from KLA as it approaches its next earnings release, which is expected to be April 26, 2023. In that report, analysts expect KLA to post earnings of $5.30 per share. This would mark year-over-year growth of 3.31%. Meanwhile, our latest consensus estimate is calling for revenue of $2.36 billion, up 3.02% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.21 per share and revenue of $10.2 billion, which would represent changes of +14.47% and +10.69%, respectively, from the prior year.
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 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. 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.
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 0.24% lower. KLA is currently a Zacks Rank #4 (Sell).
In terms of valuation, KLA is currently trading at a Forward P/E ratio of 15.52. For comparison, its industry has an average Forward P/E of 18, which means KLA is trading at a discount to the group.
Investors should also note that KLAC has a PEG ratio of 2.09 right now. 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 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 203, which puts it in the bottom 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
KLA (KLAC) Stock Sinks As Market Gains: What You Should Know
KLA (KLAC - Free Report) closed the most recent trading day at $371.97, moving -1% from the previous trading session. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.98%.
Coming into today, shares of the maker of equipment for manufacturing semiconductors had lost 3.37% in the past month. In that same time, the Computer and Technology sector gained 2.75%, while the S&P 500 gained 4.59%.
Investors will be hoping for strength from KLA as it approaches its next earnings release, which is expected to be April 26, 2023. In that report, analysts expect KLA to post earnings of $5.30 per share. This would mark year-over-year growth of 3.31%. Meanwhile, our latest consensus estimate is calling for revenue of $2.36 billion, up 3.02% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.21 per share and revenue of $10.2 billion, which would represent changes of +14.47% and +10.69%, respectively, from the prior year.
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 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. 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.
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 0.24% lower. KLA is currently a Zacks Rank #4 (Sell).
In terms of valuation, KLA is currently trading at a Forward P/E ratio of 15.52. For comparison, its industry has an average Forward P/E of 18, which means KLA is trading at a discount to the group.
Investors should also note that KLAC has a PEG ratio of 2.09 right now. 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 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 203, which puts it in the bottom 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.