KLA (KLAC) closed at $180.64 in the latest trading session, marking a +1.95% move from the prior day. The stock outpaced the S&P 500’s daily gain of 0.86%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.96%.
Shares of the maker of equipment for manufacturing semiconductors have depreciated by 15.38% over the course of the past month, underperforming the Computer and Technology sector’s loss of 0.56%, and the S&P 500’s loss of 1.96%.
The upcoming earnings release of KLA will be of great interest to investors. The company’s upcoming EPS is projected at $1.17, signifying a 32.95% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.03 billion, indicating a 25.42% upward movement from the same quarter last year.
KLAC’s full-year Zacks Consensus Estimates are calling for earnings of $5.43 per share and revenue of $17.85 billion. These results would represent year-over-year changes of +44.41% and +31.46%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for KLA. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, KLA boasts a Zacks Rank of #2 (Buy).
Looking at valuation, KLA is presently trading at a Forward P/E ratio of 32.66. This denotes a premium relative to the industry average Forward P/E of 20.27.
We can also see that KLAC currently has a PEG ratio of 1.57. 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 average PEG ratio for the Electronics – Miscellaneous Products industry stood at 1.39 at the close of the market yesterday.
The Electronics – Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
