In the latest close session, KLA (KLAC) was down 4.86% at $892.22. This change lagged the S&P 500's 0.06% gain on the day. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.39%.
The stock of maker of equipment for manufacturing semiconductors has risen by 9.52% in the past month, lagging the Computer and Technology sector's gain of 9.6% and overreaching the S&P 500's gain of 5.88%.
The investment community will be closely monitoring the performance of KLA in its forthcoming earnings report. The company is scheduled to release its earnings on July 31, 2025. The company is predicted to post an EPS of $8.53, indicating a 29.24% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.08 billion, indicating a 19.75% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $32.46 per share and a revenue of $12.05 billion, indicating changes of +36.73% and 0%, respectively, from the former year.
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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.35% higher. KLA is currently sporting a Zacks Rank of #2 (Buy).
In the context of valuation, KLA is at present trading with a Forward P/E ratio of 28.28. This indicates a premium in contrast to its industry's Forward P/E of 18.85.
Also, we should mention that KLAC has a PEG ratio of 1.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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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KLA Corporation (KLAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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