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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 $513.47, moving +0.18% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.
Coming into today, shares of the maker of equipment for manufacturing semiconductors had gained 2.79% in the past month. In that same time, the Computer and Technology sector gained 3.06%, while the S&P 500 gained 0.58%.
Investors will be hoping for strength from KLA as it approaches its next earnings release. The company is expected to report EPS of $5.39, down 23.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.36 billion, down 13.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.11 per share and revenue of $9.54 billion, which would represent changes of -12.85% and -9.07%, 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 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. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.8% higher. KLA is currently a Zacks Rank #3 (Hold).
Investors should also note KLA's current valuation metrics, including its Forward P/E ratio of 23.18. Its industry sports an average Forward P/E of 20.36, so we one might conclude that KLA is trading at a premium comparatively.
Investors should also note that KLAC has a PEG ratio of 2.46 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 industry currently had an average PEG ratio of 2.21 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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KLA (KLAC) Gains As Market Dips: What You Should Know
KLA (KLAC - Free Report) closed the most recent trading day at $513.47, moving +0.18% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.
Coming into today, shares of the maker of equipment for manufacturing semiconductors had gained 2.79% in the past month. In that same time, the Computer and Technology sector gained 3.06%, while the S&P 500 gained 0.58%.
Investors will be hoping for strength from KLA as it approaches its next earnings release. The company is expected to report EPS of $5.39, down 23.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.36 billion, down 13.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.11 per share and revenue of $9.54 billion, which would represent changes of -12.85% and -9.07%, 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 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. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.8% higher. KLA is currently a Zacks Rank #3 (Hold).
Investors should also note KLA's current valuation metrics, including its Forward P/E ratio of 23.18. Its industry sports an average Forward P/E of 20.36, so we one might conclude that KLA is trading at a premium comparatively.
Investors should also note that KLAC has a PEG ratio of 2.46 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 industry currently had an average PEG ratio of 2.21 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.