The latest trading session saw KLA (KLAC) ending at $773.97, denoting a -0.45% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.39%.
Shares of the maker of equipment for manufacturing semiconductors have appreciated by 10.65% over the course of the past month, underperforming the Computer and Technology sector's gain of 11.04% and outperforming the S&P 500's gain of 6.69%.
Analysts and investors alike will be keeping a close eye on the performance of KLA in its upcoming earnings disclosure. The company is forecasted to report an EPS of $8.48, showcasing a 28.48% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.07 billion, indicating a 19.46% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $32.38 per share and a revenue of $12.04 billion, representing changes of +36.39% and +22.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for KLA. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.52% higher. Currently, KLA is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, KLA is presently trading at a Forward P/E ratio of 24.01. This represents a premium compared to its industry's average Forward P/E of 18.26.
It is also worth noting that KLAC currently has a PEG ratio of 1.48. 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. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.63.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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