The most recent trading session ended with KLA (KLAC) standing at $782.09, reflecting a +0.81% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.01%. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq increased by 0.32%.
Coming into today, shares of the maker of equipment for manufacturing semiconductors had gained 14.18% in the past month. In that same time, the Computer and Technology sector gained 7.95%, while the S&P 500 gained 5.2%.
Analysts and investors alike will be keeping a close eye on the performance of KLA in its upcoming earnings disclosure. The company's upcoming EPS is projected at $8.48, signifying a 28.48% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.07 billion, indicating a 19.46% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $32.38 per share and a revenue of $12.04 billion, indicating changes of +36.39% and +22.72%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for KLA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, KLA boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, KLA is holding a Forward P/E ratio of 23.96. This expresses a premium compared to the average Forward P/E of 18.91 of its industry.
Also, we should mention that KLAC 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. The average PEG ratio for the Electronics - Miscellaneous Products industry stood at 1.66 at the close of the market yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 39% of over 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.
To follow KLAC in the coming trading sessions, be sure to utilize Zacks.com.
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KLA Corporation (KLAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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