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Here's Why KLA (KLAC) Fell More Than Broader Market
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In the latest close session, KLA (KLAC - Free Report) was down 3.93% at $248.64. The stock's change was less than the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.24%.
The maker of equipment for manufacturing semiconductors's stock has climbed by 34.26% in the past month, exceeding the Computer and Technology sector's loss of 2.81% and the S&P 500's loss of 1.42%.
The investment community will be closely monitoring the performance of KLA in its forthcoming earnings report. The company's upcoming EPS is projected at $1, signifying a 6.38% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.59 billion, up 13.14% from the prior-year quarter.
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.
Investors should also take note of any recent adjustments to analyst estimates for KLA. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Currently, KLA is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, KLA is holding a Forward P/E ratio of 69.82. This represents a premium compared to its industry average Forward P/E of 29.47.
One should further note that KLAC currently holds a PEG ratio of 3.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.71.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 23% of over 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.
View the Zacks #1 Rank List
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Here's Why KLA (KLAC) Fell More Than Broader Market
In the latest close session, KLA (KLAC - Free Report) was down 3.93% at $248.64. The stock's change was less than the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.24%.
The maker of equipment for manufacturing semiconductors's stock has climbed by 34.26% in the past month, exceeding the Computer and Technology sector's loss of 2.81% and the S&P 500's loss of 1.42%.
The investment community will be closely monitoring the performance of KLA in its forthcoming earnings report. The company's upcoming EPS is projected at $1, signifying a 6.38% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.59 billion, up 13.14% from the prior-year quarter.
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.
Investors should also take note of any recent adjustments to analyst estimates for KLA. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Currently, KLA is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, KLA is holding a Forward P/E ratio of 69.82. This represents a premium compared to its industry average Forward P/E of 29.47.
One should further note that KLAC currently holds a PEG ratio of 3.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.71.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 23% of over 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.