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KLA (KLAC) Pledges $1M to Promote Systemic Racial Equity

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KLA Corporation (KLAC - Free Report) recently announced that the KLA Foundation is dedicating $1 million to national and local initiatives for addressing and improving systemic racial inequality.

The latest effort reinforces KLA’s stance against racial discrimination.

Notably, $250,000 out of the total committed amount will be given to the National Association for the Advancement of Colored People. Another $250,000 will be given to those organizations that are focused on the development of the Black community.

We note that the latest move bodes well for the company as it takes a stand amid the strong protests against racial discrimination and economic inequality.

The remaining $500,000 of the total amount will be committed to the welfare of employees. This will aid equality and career opportunities for black and minority employees of KLA. Moreover, this bodes well for the internal diversity of KLA and is crucial to success in this era.

Further, this will help the company in winning employee confidence, which in turn augurs well for its office operations and commitment toward the welfare of employees.

Rick Wallace, KLA CEO, said "It is becoming increasingly important that companies take a more prominent, active position in helping address and remedy racial and societal inequalities and injustice". "This is the time to commit resources, skills and leadership toward making a significant and lasting positive impact, together."

KLA Corporation Price and Consensus

 

Support to Black Community Gains Steam

By committing $1 million toward the support of black and minority community, KLA joins the bandwagon of other companies that are also taking strong stand against racial discrimination.

Apart from KLA, PayPal recently pledged $530 million in a bid to support black and minority-owned businesses and communities in the United States.

Moreover, companies like Bank of America and Goldman Sachs have pledged $1 billion and $10 million, respectively, to address economic inequality and promote racial equity.

Also, technology giants including Amazon, Microsoft and International Business Machines have taken aggressive stance against racial discrimination.

Notably, Amazon and Microsoft have implemented moratorium on police use of their respective facial recognition software in order to promote racial equity.

Further, IBM will reportedly no longer sell or develop facial-recognition software in an effort to curb racial discrimination. Moreover, the company has opposed the use of such technology for mass surveillance and racial profiling.

Given the scenario, we believe KLA’s latest move is likely to aid its brand reputation.

Zacks Rank & Stocks to Consider

Currently, KLA carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Wayfair Inc. (W - Free Report) , eBay (EBAY - Free Report) and Inphi Corporation . While Wayfair and eBay sport a Zacks Rank #1 (Strong Buy), Inphi carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Wayfair, eBay, and Inphi is currently projected at 23%, 12.4% and 37.7%, respectively.

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