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

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KLA (KLAC - Free Report) closed the most recent trading day at $159.64, moving -1.8% from the previous trading session. This move lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.3%.

Coming into today, shares of the maker of equipment for manufacturing semiconductors had gained 6.53% in the past month. In that same time, the Computer and Technology sector gained 0.91%, while the S&P 500 lost 0.25%.

KLAC will be looking to display strength as it nears its next earnings release, which is expected to be October 30, 2019. The company is expected to report EPS of $2.20, down 10.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.35 billion, up 23.55% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.50 per share and revenue of $5.57 billion. These totals would mark changes of +12.29% and +22.01%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for KLAC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. KLAC currently has a Zacks Rank of #3 (Hold).

Investors should also note KLAC's current valuation metrics, including its Forward P/E ratio of 17.11. This represents a discount compared to its industry's average Forward P/E of 20.75.

Investors should also note that KLAC has a PEG ratio of 1.48 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.48 at yesterday's closing price.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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