KLA (KLAC) ended the recent trading session at $177.18, demonstrating a -3.13% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.59%. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq lost 0.65%.
Shares of the maker of equipment for manufacturing semiconductors witnessed a loss of 12.17% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.02%, and the S&P 500's loss of 1.37%.
Investors will be eagerly watching for the performance of KLA in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.17, showcasing a 32.95% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.03 billion, indicating a 25.42% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $5.43 per share and a revenue of $17.85 billion, demonstrating changes of +44.41% and +31.46%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for KLA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. KLA is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, KLA is presently being traded at a Forward P/E ratio of 33.71. This represents a premium compared to its industry average Forward P/E of 20.64.
Also, we should mention that KLAC has a PEG ratio of 1.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.35.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KLA Corporation (KLAC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).