KLA (KLAC) closed the most recent trading day at $1,409.57, moving -3.78% from the previous trading session. This change lagged the S&P 500's daily loss of 1.52%. Meanwhile, the Dow experienced a drop of 1.56%, and the technology-dominated Nasdaq saw a decrease of 1.78%.
Shares of the maker of equipment for manufacturing semiconductors have depreciated by 0.98% over the course of the past month, outperforming the Computer and Technology sector's loss of 1.66%, and the S&P 500's loss of 2.25%.
The investment community will be paying close attention to the earnings performance of KLA in its upcoming release. In that report, analysts expect KLA to post earnings of $9.15 per share. This would mark year-over-year growth of 8.8%. Alongside, our most recent consensus estimate is anticipating revenue of $3.38 billion, indicating a 10.33% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $36.63 per share and a revenue of $13.41 billion, indicating changes of +10.07% and +10.28%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for KLA. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. Right now, KLA possesses a Zacks Rank of #2 (Buy).
From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 40. This valuation marks a premium compared to its industry average Forward P/E of 25.12.
We can additionally observe that KLAC currently boasts a PEG ratio of 2.76. 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. Electronics - Miscellaneous Products stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 26, placing it within the top 11% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
