Yahoo Finance KLA (KLAC) Exceeds Market Returns: Some Facts to Consider
KLA (KLAC) ended the recent trading session at $814.87, demonstrating a +0.19% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.3%.
Coming into today, shares of the maker of equipment for manufacturing semiconductors had gained 5.3% in the past month. In that same time, the Computer and Technology sector gained 6.18%, while the S&P 500 gained 3.38%.
Investors will be eagerly watching for the performance of KLA in its upcoming earnings disclosure. The company is forecasted to report an EPS of $6.08, showcasing a 12.59% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.5 billion, up 6.34% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $23.30 per share and revenue of $9.75 billion, which would represent changes of -8.16% and -7.13%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for KLA. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. KLA is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 34.9. This signifies a premium in comparison to the average Forward P/E of 20.3 for its industry.
Also, we should mention that KLAC has a PEG ratio of 3.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Miscellaneous Products industry had an average PEG ratio of 2.67 as trading concluded yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 195, this industry ranks in the bottom 23% of all industries, numbering over 250.
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.
To follow KLAC in the coming trading sessions, be sure to utilize Zacks.com.
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KLA Corporation (KLAC) : Free Stock Analysis Report
