In This Article:
In the latest market close, KLA (KLAC) reached $650.53, with a +0.39% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.1%. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq added 1.35%.
Shares of the maker of equipment for manufacturing semiconductors have appreciated by 0.51% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.09% and outperforming the S&P 500's gain of 0.22%.
Analysts and investors alike will be keeping a close eye on the performance of KLA in its upcoming earnings disclosure. On that day, KLA is projected to report earnings of $7.73 per share, which would represent year-over-year growth of 25.49%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.93 billion, indicating a 17.98% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $30.37 per share and revenue of $11.6 billion. These totals would mark changes of +27.93% and +18.19%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for KLA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.72% lower. At present, KLA boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 21.33 right now. This represents a premium compared to its industry's average Forward P/E of 19.59.
We can also see that KLAC currently has a PEG ratio of 1.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.97 at yesterday's closing price.