KLA (KLAC) closed the most recent trading day at $1,540.06, moving +1.53% from the previous trading session. The stock’s performance was ahead of the S&P 500’s daily gain of 0.44%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.54%.
The maker of equipment for manufacturing semiconductors’s stock has climbed by 12.81% in the past month, exceeding the Computer and Technology sector’s loss of 2.47% and the S&P 500’s loss of 3.31%.
Market participants will be closely following the financial results of KLA in its upcoming release. The company is forecasted to report an EPS of $9.16, showcasing a 8.92% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.38 billion, reflecting a 10.49% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $36.62 per share and revenue of $13.41 billion, which would represent changes of +10.04% and +10.35%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KLA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.12% upward. KLA presently features a Zacks Rank of #3 (Hold).
In terms of valuation, KLA is presently being traded at a Forward P/E ratio of 41.42. This valuation marks a premium compared to its industry average Forward P/E of 22.44.
It’s also important to note that KLAC currently trades at a PEG ratio of 2.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As the market closed yesterday, the Electronics – Miscellaneous Products industry was having an average PEG ratio of 1.6.
