In the latest close session, KLA (KLAC) was down 89.47% at $253.84. This change lagged the S&P 500's daily gain of 0.5%. Meanwhile, the Dow experienced a rise of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.31%.
Shares of the maker of equipment for manufacturing semiconductors have appreciated by 27.4% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.42%, and the S&P 500's loss of 0.23%.
The investment community will be paying close attention to the earnings performance of KLA in its upcoming release. The company's upcoming EPS is projected at $9.97, signifying a 6.29% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.59 billion, up 13.14% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $37.06 per share and a revenue of $13.52 billion, signifying shifts of +11.36% and +11.19%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for KLA. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, KLA holds a Zacks Rank of #2 (Buy).
From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 65.07. Its industry sports an average Forward P/E of 28.08, so one might conclude that KLA is trading at a premium comparatively.
It is also worth noting that KLAC currently has a PEG ratio of 3.57. 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. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.63 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 64, putting 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).