In the latest market close, KLA (KLAC) reached $872.00, with a +1.8% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.27%.
The maker of equipment for manufacturing semiconductors's shares have seen an increase of 7.63% over the last month, not keeping up with the Computer and Technology sector's gain of 11.99% and outstripping the S&P 500's gain of 6.9%.
Analysts and investors alike will be keeping a close eye on the performance of KLA in its upcoming earnings disclosure. In that report, analysts expect KLA to post earnings of $8.48 per share. This would mark year-over-year growth of 28.48%. Our most recent consensus estimate is calling for quarterly revenue of $3.07 billion, up 19.46% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $32.38 per share and a revenue of $12.04 billion, demonstrating changes of +36.39% and +22.72%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for KLA. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. KLA is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note KLA's current valuation metrics, including its Forward P/E ratio of 26.45. Its industry sports an average Forward P/E of 18.6, so one might conclude that KLA is trading at a premium comparatively.
We can also see that KLAC currently has a PEG ratio of 1.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Miscellaneous Products industry had an average PEG ratio of 1.68 as trading concluded yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 40% 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.
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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