KLA (KLAC) closed the most recent trading day at $214.69, moving -1.32% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.14%. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq decreased by 0.57%.
The stock of maker of equipment for manufacturing semiconductors has fallen by 11.02% in the past month, lagging the Computer and Technology sector's loss of 4.82% and the S&P 500's gain of 0.25%.
The investment community will be closely monitoring the performance of KLA in its forthcoming earnings report. The company is scheduled to release its earnings on July 28, 2026. The company is predicted to post an EPS of $1, indicating a 6.38% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.61 billion, up 13.71% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.71 per share and revenue of $13.53 billion. These totals would mark changes of +11.41% and +11.31%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for KLA. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.18% higher within the past month. KLA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, KLA is presently being traded at a Forward P/E ratio of 42.95. This valuation marks a premium compared to its industry average Forward P/E of 25.44.
Meanwhile, KLAC's PEG ratio is currently 2.06. 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 1.66.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).