KLA (KLAC) closed at $982.75 in the latest trading session, marking a -6.71% move from the prior day. This change lagged the S&P 500's 2.71% loss on the day. Elsewhere, the Dow lost 1.9%, while the tech-heavy Nasdaq lost 3.56%.
Shares of the maker of equipment for manufacturing semiconductors have appreciated by 9.82% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.22%, and the S&P 500's gain of 3.5%.
Analysts and investors alike will be keeping a close eye on the performance of KLA in its upcoming earnings disclosure. The company's upcoming EPS is projected at $8.47, signifying a 15.55% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.16 billion, indicating a 11.04% upward movement from the same quarter last year.
KLAC's full-year Zacks Consensus Estimates are calling for earnings of $34.55 per share and revenue of $12.77 billion. These results would represent year-over-year changes of +3.82% and +5.08%, respectively.
Investors should also note any recent changes to analyst estimates for KLA. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.5% higher. As of now, KLA holds a Zacks Rank of #2 (Buy).
In the context of valuation, KLA is at present trading with a Forward P/E ratio of 30.49. This valuation marks a premium compared to its industry average Forward P/E of 21.11.
We can also see that KLAC currently has a PEG ratio of 3.16. 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 was holding an average PEG ratio of 1.87 at yesterday's closing price.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 19% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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KLA Corporation (KLAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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