In the latest trading session, KLA (KLAC) closed at $1,520.00, marking a +2.28% move from the previous day. This change outpaced the S&P 500's 1.16% gain on the day. At the same time, the Dow added 1.21%, and the tech-heavy Nasdaq gained 1.18%.
Heading into today, shares of the maker of equipment for manufacturing semiconductors had gained 17.14% over the past month, outpacing the Computer and Technology sector's loss of 1.07% and the S&P 500's loss of 0.42%.
Market participants will be closely following the financial results of KLA in its upcoming release. The company plans to announce its earnings on January 29, 2026. The company is predicted to post an EPS of $8.75, indicating a 6.71% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.24 billion, indicating a 5.39% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $35.61 per share and a revenue of $13.09 billion, indicating changes of +7% and +7.72%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for KLA. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.47% higher within the past month. KLA is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 41.74 right now. This expresses a premium compared to the average Forward P/E of 25.3 of its industry.
Investors should also note that KLAC has a PEG ratio of 3.94 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. KLAC's industry had an average PEG ratio of 1.82 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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