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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 $452.18, moving -1.12% from the previous trading session. This move lagged the S&P 500's daily loss of 0.94%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.

Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had lost 6.04% over the past month. This has lagged the Computer and Technology sector's gain of 3.69% and the S&P 500's gain of 1.85% in that time.

KLA will be looking to display strength as it nears its next earnings release. On that day, KLA is projected to report earnings of $5.39 per share, which would represent a year-over-year decline of 23.65%. Meanwhile, our latest consensus estimate is calling for revenue of $2.36 billion, down 13.29% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.11 per share and revenue of $9.54 billion. These totals would mark changes of -12.85% and -9.07%, respectively, from last year.

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.

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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. KLA currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 20.68 right now. This valuation marks a premium compared to its industry's average Forward P/E of 20.22.

It is also worth noting that KLAC currently has a PEG ratio of 2.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 2.11 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 151, which puts it in the bottom 41% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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