KLA (KLAC) closed at $902.94 in the latest trading session, marking a +1.06% move from the prior day. This move outpaced the S&P 500's daily gain of 0.8%. On the other hand, the Dow registered a gain of 0.94%, and the technology-centric Nasdaq increased by 0.97%.
Shares of the maker of equipment for manufacturing semiconductors have appreciated by 14.91% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.5%, and the S&P 500's gain of 5.12%.
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Market participants will be closely following the financial results of KLA in its upcoming release. The company is forecasted to report an EPS of $8.53, showcasing a 29.24% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.08 billion, up 19.74% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $32.46 per share and revenue of $12.05 billion, indicating changes of +36.73% and +22.77%, respectively, compared to the previous year.
It is also important to note the recent changes 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. At present, KLA boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 27.52. This valuation marks a premium compared to its industry average Forward P/E of 19.08.
We can also see that KLAC currently has a PEG ratio of 1.7. 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. KLAC's industry had an average PEG ratio of 1.72 as of yesterday's close.
The Electronics – Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 41% of all 250+ industries.
