KLA (KLAC) ended the recent trading session at $1,359.69, demonstrating a -2.53% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.34%. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq increased by 0.16%.
Shares of the maker of equipment for manufacturing semiconductors have appreciated by 13.82% over the course of the past month, outperforming the Computer and Technology sector's loss of 1%, and the S&P 500's gain of 1.19%.
The upcoming earnings release of KLA will be of great interest to investors. In that report, analysts expect KLA to post earnings of $8.75 per share. This would mark year-over-year growth of 6.71%. At the same time, our most recent consensus estimate is projecting a revenue of $3.24 billion, reflecting a 5.39% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $35.44 per share and a revenue of $13.04 billion, indicating changes of +6.49% and +7.31%, respectively, from the former year.
Any recent changes to analyst estimates for KLA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. KLA is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 39.37 right now. This indicates a premium in contrast to its industry's Forward P/E of 23.63.
Meanwhile, KLAC's PEG ratio is currently 3.71. 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. The average PEG ratio for the Electronics - Miscellaneous Products industry stood at 1.69 at the close of the market yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 36% echelons of all 250+ industries.
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.
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KLA Corporation (KLAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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