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

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The most recent trading session ended with KLA (KLAC - Free Report) standing at $652.37, reflecting a +0.62% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.61% for the day. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 0.62%.

The maker of equipment for manufacturing semiconductors's shares have seen a decrease of 5.68% over the last month, not keeping up with the Computer and Technology sector's gain of 3.41% and the S&P 500's gain of 2.85%.

The investment community will be paying close attention to the earnings performance of KLA in its upcoming release. The company's upcoming EPS is projected at $7.78, signifying a 26.3% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.93 billion, up 17.98% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $30.61 per share and a revenue of $11.61 billion, signifying shifts of +28.94% and +18.28%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for KLA. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has shifted 0.95% downward. KLA presently features a Zacks Rank of #3 (Hold).

In terms of valuation, KLA is currently trading at a Forward P/E ratio of 21.18. This signifies a premium in comparison to the average Forward P/E of 21.08 for its industry.

One should further note that KLAC currently holds a PEG ratio of 1.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. KLAC's industry had an average PEG ratio of 2.15 as of yesterday's close.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 136, finds itself in the bottom 46% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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