KLA (KLAC) Rises Higher Than Market: Key Facts

In the latest market close, KLA (KLAC) reached $698.40, with a +1.9% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.54%.

The maker of equipment for manufacturing semiconductors's stock has climbed by 5.76% in the past month, exceeding the Computer and Technology sector's loss of 0.4% and the S&P 500's gain of 2.06%.

Investors will be eagerly watching for the performance of KLA in its upcoming earnings disclosure. The company is predicted to post an EPS of $5.26, indicating a 4.19% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.3 billion, down 5.37% from the prior-year quarter.

KLAC's full-year Zacks Consensus Estimates are calling for earnings of $22.82 per share and revenue of $9.57 billion. These results would represent year-over-year changes of -10.05% and -8.85%, respectively.

Any recent changes to analyst estimates for KLA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return 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 #3 (Hold).

In terms of valuation, KLA is currently trading at a Forward P/E ratio of 30.04. This denotes a premium relative to the industry's average Forward P/E of 23.11.

Also, we should mention that KLAC has a PEG ratio of 3.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Electronics - Miscellaneous Products industry was having an average PEG ratio of 2.4.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 29% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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