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KLA (KLAC) Rises But Trails Market: What Investors Should Know
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KLA (KLAC - Free Report) closed the most recent trading day at $491.21, moving +0.9% from the previous trading session. This move lagged the S&P 500's daily gain of 1.06%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 1.2%.
The maker of equipment for manufacturing semiconductors's stock has climbed by 7.17% in the past month, exceeding the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3%.
Investors will be eagerly watching for the performance of KLA in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 25, 2023. The company's earnings per share (EPS) are projected to be $5.39, reflecting a 23.65% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.36 billion, showing a 13.29% drop compared to the year-ago quarter.
KLAC's full-year Zacks Consensus Estimates are calling for earnings of $22.11 per share and revenue of $9.54 billion. These results would represent year-over-year changes of -12.85% and -9.07%, respectively.
Any recent changes to analyst estimates for KLA should also be noted by investors. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, KLA possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 22.02. Its industry sports an average Forward P/E of 19.48, so one might conclude that KLA is trading at a premium comparatively.
We can also see that KLAC currently has a PEG ratio of 2.33. 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. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.98.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank is ordered 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) Rises But Trails Market: What Investors Should Know
KLA (KLAC - Free Report) closed the most recent trading day at $491.21, moving +0.9% from the previous trading session. This move lagged the S&P 500's daily gain of 1.06%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 1.2%.
The maker of equipment for manufacturing semiconductors's stock has climbed by 7.17% in the past month, exceeding the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3%.
Investors will be eagerly watching for the performance of KLA in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 25, 2023. The company's earnings per share (EPS) are projected to be $5.39, reflecting a 23.65% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.36 billion, showing a 13.29% drop compared to the year-ago quarter.
KLAC's full-year Zacks Consensus Estimates are calling for earnings of $22.11 per share and revenue of $9.54 billion. These results would represent year-over-year changes of -12.85% and -9.07%, respectively.
Any recent changes to analyst estimates for KLA should also be noted by investors. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, KLA possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 22.02. Its industry sports an average Forward P/E of 19.48, so one might conclude that KLA is trading at a premium comparatively.
We can also see that KLAC currently has a PEG ratio of 2.33. 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. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.98.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank is ordered 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.