KLA (KLAC – Free Report) closed the latest trading day at $706.49, indicating a -1.39% change from the previous session’s end. The stock’s performance was behind the S&P 500’s daily gain of 0.08%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.52%.
The maker of equipment for manufacturing semiconductors’s stock has dropped by 7.87% in the past month, exceeding the Computer and Technology sector’s loss of 12.04% and lagging the S&P 500’s loss of 7.33%.
Analysts and investors alike will be keeping a close eye on the performance of KLA in its upcoming earnings disclosure. On that day, KLA is projected to report earnings of $8.07 per share, which would represent year-over-year growth of 53.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.01 billion, up 27.4% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $31.59 per share and revenue of $11.91 billion. These totals would mark changes of +33.07% and +21.35%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for KLA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, there’s been no change in the Zacks Consensus EPS estimate. At present, KLA boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 22.68 right now. This indicates a premium in contrast to its industry’s Forward P/E of 19.67.
We can additionally observe that KLAC currently boasts a PEG ratio of 1.45. 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 1.46.
The Electronics – Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 133, this industry ranks in the bottom 48% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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