KLA (KLAC) ended the recent trading session at $1,182.82, demonstrating a +2.06% change from the preceding day's closing price. This change outpaced the S&P 500's 0.79% gain on the day. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, added 1.15%.
Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had gained 9.43% outpaced the Computer and Technology sector's gain of 1.2% and the S&P 500's gain of 1.27%.
Market participants will be closely following the financial results of KLA in its upcoming release. The company plans to announce its earnings on October 29, 2025. In that report, analysts expect KLA to post earnings of $8.55 per share. This would mark year-over-year growth of 16.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.16 billion, up 11.04% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $34.83 per share and a revenue of $12.9 billion, representing changes of +4.66% and +6.14%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for KLA. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 moved 1.07% higher. KLA is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, KLA is currently trading at a Forward P/E ratio of 33.28. For comparison, its industry has an average Forward P/E of 23.53, which means KLA is trading at a premium to the group.
Investors should also note that KLAC has a PEG ratio of 3.34 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Miscellaneous Products industry had an average PEG ratio of 2.06 as trading concluded yesterday.
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 gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KLA Corporation (KLAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
