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Why KLA (KLAC) Dipped More Than Broader Market Today
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In the latest trading session, KLA (KLAC - Free Report) closed at $244.49, marking a -9.17% move from the previous day. This change lagged the S&P 500's daily loss of 1.44%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 2.22%.
Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had gained 42.53% outpaced the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
Investors will be eagerly watching for the performance of KLA in its upcoming earnings disclosure. In that report, analysts expect KLA to post earnings of $1 per share. This would mark year-over-year growth of 6.38%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.59 billion, indicating a 13.14% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.71 per share and revenue of $13.52 billion, indicating changes of +11.41% and +11.19%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for KLA. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. KLA is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 72.62. This signifies a premium in comparison to the average Forward P/E of 31.46 for its industry.
It is also worth noting that KLAC currently has a PEG ratio of 4.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.79.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Why KLA (KLAC) Dipped More Than Broader Market Today
In the latest trading session, KLA (KLAC - Free Report) closed at $244.49, marking a -9.17% move from the previous day. This change lagged the S&P 500's daily loss of 1.44%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 2.22%.
Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had gained 42.53% outpaced the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
Investors will be eagerly watching for the performance of KLA in its upcoming earnings disclosure. In that report, analysts expect KLA to post earnings of $1 per share. This would mark year-over-year growth of 6.38%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.59 billion, indicating a 13.14% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.71 per share and revenue of $13.52 billion, indicating changes of +11.41% and +11.19%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for KLA. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. KLA is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 72.62. This signifies a premium in comparison to the average Forward P/E of 31.46 for its industry.
It is also worth noting that KLAC currently has a PEG ratio of 4.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.79.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.