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KLA (KLAC) Surpasses Market Returns: Some Facts Worth Knowing

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KLA (KLAC - Free Report) ended the recent trading session at $1,795.91, demonstrating a +1.53% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.18%. Meanwhile, the Dow experienced a rise of 0.66%, and the technology-dominated Nasdaq saw an increase of 1.96%.

Heading into today, shares of the maker of equipment for manufacturing semiconductors had gained 22.98% over the past month, outpacing the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.93%.

Market participants will be closely following the financial results of KLA in its upcoming release. The company plans to announce its earnings on April 29, 2026. On that day, KLA is projected to report earnings of $9.16 per share, which would represent year-over-year growth of 8.92%. Meanwhile, our latest consensus estimate is calling for revenue of $3.38 billion, up 10.49% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $36.62 per share and revenue of $13.41 billion. These totals would mark changes of +10.04% and +10.35%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for KLA. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. KLA is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, KLA currently has a Forward P/E ratio of 48.29. This expresses a premium compared to the average Forward P/E of 26.31 of its industry.

We can also see that KLAC currently has a PEG ratio of 3.34. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Miscellaneous Products industry had an average PEG ratio of 1.57 as trading concluded yesterday.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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