In the latest trading session, KLA (KLAC) closed at $936.53, marking a +1.59% move from the previous day. This move outpaced the S&P 500's daily loss of 0.4%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq appreciated by 0.18%.
Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had gained 3.3% lagged the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 4.97%.
The upcoming earnings release of KLA will be of great interest to investors. The company's earnings report is expected on July 31, 2025. The company's earnings per share (EPS) are projected to be $8.53, reflecting a 29.24% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.08 billion, up 19.75% from the year-ago period.
KLAC's full-year Zacks Consensus Estimates are calling for earnings of $32.46 per share and revenue of $12.05 billion. These results would represent year-over-year changes of +36.73% and 0%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for KLA. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 0.42% higher. At present, KLA boasts a Zacks Rank of #2 (Buy).
Investors should also note KLA's current valuation metrics, including its Forward P/E ratio of 27.8. For comparison, its industry has an average Forward P/E of 19.28, which means KLA is trading at a premium to the group.
Meanwhile, KLAC's PEG ratio is currently 1.72. 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 1.78.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 139, placing it within the bottom 44% of over 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.
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KLA Corporation (KLAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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