KLA (KLAC) ended the recent trading session at $686.19, demonstrating a +0.55% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 0.87%.
Shares of the maker of equipment for manufacturing semiconductors witnessed a loss of 2.37% over the previous month, beating the performance of the Computer and Technology sector with its loss of 7.99% and the S&P 500's loss of 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of KLA in its upcoming earnings disclosure. The company is expected to report EPS of $8.06, up 53.23% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $3 billion, reflecting a 27.28% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $31.57 per share and a revenue of $11.9 billion, signifying shifts of +32.98% and +21.29%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for KLA. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. KLA is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note KLA's current valuation metrics, including its Forward P/E ratio of 21.62. This represents a premium compared to its industry's average Forward P/E of 16.51.
We can also see that KLAC currently has a PEG ratio of 1.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.38 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 175, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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