In the latest close session, KLA (KLAC) was up +2.01% at $1,428.19. This move outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.26%.
Shares of the maker of equipment for manufacturing semiconductors witnessed a gain of 17.26% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.85%, and the S&P 500's gain of 1.89%.
The upcoming earnings release of KLA will be of great interest to investors. It is anticipated that the company will report an EPS of $8.75, marking a 6.71% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.24 billion, up 5.39% from the year-ago period.
KLAC's full-year Zacks Consensus Estimates are calling for earnings of $35.44 per share and revenue of $13.04 billion. These results would represent year-over-year changes of +6.49% and +7.31%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for KLA. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.06% rise in the Zacks Consensus EPS estimate. KLA currently has a Zacks Rank of #2 (Buy).
Looking at valuation, KLA is presently trading at a Forward P/E ratio of 39.51. This represents a premium compared to its industry average Forward P/E of 24.13.
Also, we should mention that KLAC has a PEG ratio of 3.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.71.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 41% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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