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In the latest trading session, KLA (KLAC - Free Report) closed at $682.84, marking a +1.5% move from the previous day. This move outpaced the S&P 500's daily gain of 1.11%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.24%.
The maker of equipment for manufacturing semiconductors's stock has dropped by 6.98% in the past month, falling short of the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 0.48%.
The upcoming earnings release of KLA will be of great interest to investors. The company's earnings report is expected on April 25, 2024. On that day, KLA is projected to report earnings of $5.08 per share, which would represent a year-over-year decline of 7.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.3 billion, down 5.37% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $22.74 per share and revenue of $9.62 billion, indicating changes of -10.37% and -8.32%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for KLA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% lower. KLA is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, KLA is presently being traded at a Forward P/E ratio of 29.58. Its industry sports an average Forward P/E of 21.16, so one might conclude that KLA is trading at a premium comparatively.
Meanwhile, KLAC's PEG ratio is currently 3.27. 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. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 2.32.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why KLA (KLAC) Outpaced the Stock Market Today
In the latest trading session, KLA (KLAC - Free Report) closed at $682.84, marking a +1.5% move from the previous day. This move outpaced the S&P 500's daily gain of 1.11%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.24%.
The maker of equipment for manufacturing semiconductors's stock has dropped by 6.98% in the past month, falling short of the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 0.48%.
The upcoming earnings release of KLA will be of great interest to investors. The company's earnings report is expected on April 25, 2024. On that day, KLA is projected to report earnings of $5.08 per share, which would represent a year-over-year decline of 7.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.3 billion, down 5.37% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $22.74 per share and revenue of $9.62 billion, indicating changes of -10.37% and -8.32%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for KLA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% lower. KLA is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, KLA is presently being traded at a Forward P/E ratio of 29.58. Its industry sports an average Forward P/E of 21.16, so one might conclude that KLA is trading at a premium comparatively.
Meanwhile, KLAC's PEG ratio is currently 3.27. 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. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 2.32.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.