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KLA (KLAC) Dips More Than Broader Market: What You Should Know

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KLA (KLAC - Free Report) ended the recent trading session at $1,785.37, demonstrating a -1.11% change from the preceding day's closing price. This change lagged the S&P 500's 0.64% loss on the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.59%.

Heading into today, shares of the maker of equipment for manufacturing semiconductors had gained 19.44% over the past month, outpacing the Computer and Technology sector's gain of 13.17% and the S&P 500's gain of 9.33%.

The investment community will be paying close attention to the earnings performance of KLA in its upcoming release. The company is slated to reveal its earnings on April 29, 2026. The company is predicted to post an EPS of $9.16, indicating a 8.92% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.38 billion, up 10.49% from the prior-year quarter.

KLAC's full-year Zacks Consensus Estimates are calling for earnings of $36.64 per share and revenue of $13.42 billion. These results would represent year-over-year changes of +10.1% and +10.41%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for KLA. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. At present, KLA boasts a Zacks Rank of #3 (Hold).

In terms of valuation, KLA is presently being traded at a Forward P/E ratio of 49.27. This represents a premium compared to its industry average Forward P/E of 27.49.

We can also see that KLAC currently has a PEG ratio of 3.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics - Miscellaneous Products stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 34, placing it within the top 14% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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