KLA (KLAC) closed the most recent trading day at $932.63, moving +1.62% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.03%.
Heading into today, shares of the maker of equipment for manufacturing semiconductors had lost 1.9% over the past month, lagging the Computer and Technology sector's gain of 3.1% and the S&P 500's gain of 2.09%.
The investment community will be closely monitoring the performance of KLA in its forthcoming earnings report. The company is forecasted to report an EPS of $8.47, showcasing a 15.55% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.16 billion, up 11.09% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $34.37 per share and a revenue of $12.71 billion, demonstrating changes of +3.28% and +4.56%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for KLA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. KLA currently has a Zacks Rank of #3 (Hold).
With respect to valuation, KLA is currently being traded at a Forward P/E ratio of 26.7. This valuation marks a premium compared to its industry average Forward P/E of 18.88.
Meanwhile, KLAC's PEG ratio is currently 3.13. 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. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.92.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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