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KLA (KLAC) Increases Despite Market Slip: Here's What You Need to Know

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In the latest market close, KLA (KLAC - Free Report) reached $745.11, with a +0.5% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq lost 0.3%.

The maker of equipment for manufacturing semiconductors's stock has climbed by 3.52% in the past month, exceeding the Computer and Technology sector's gain of 1.63% and lagging the S&P 500's gain of 3.64%.

Investors will be eagerly watching for the performance of KLA in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $7.02, marking a 22.3% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.76 billion, up 14.98% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $29.09 per share and a revenue of $11.52 billion, signifying shifts of +22.54% and +17.39%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for KLA. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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.

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 remained stagnant. KLA is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 25.48 right now. This signifies a premium in comparison to the average Forward P/E of 20.14 for its industry.

It's also important to note that KLAC currently trades at a PEG ratio of 1.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Miscellaneous Products was holding an average PEG ratio of 2.13 at yesterday's closing price.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 29% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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