In the latest trading session, KLA (KLAC) closed at $222.25, marking a -4% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.79%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 1.55%.
Shares of the maker of equipment for manufacturing semiconductors have depreciated by 9.04% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.44%, and the S&P 500's gain of 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of KLA in its upcoming earnings disclosure. The company's earnings report is set to go public on July 28, 2026. The company is expected to report EPS of $1, up 6.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.61 billion, up 13.57% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.71 per share and a revenue of $13.53 billion, representing changes of +11.41% and +11.28%, 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.29% increase. KLA is currently a Zacks Rank #3 (Hold).
With respect to valuation, KLA is currently being traded at a Forward P/E ratio of 45.83. This denotes a premium relative to the industry average Forward P/E of 25.38.
We can also see that KLAC currently has a PEG ratio of 2.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 1.7.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning it in the top 18% of all 250+ industries.
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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KLA Corporation (KLAC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).