KLA (KLAC) closed at $387.75 in the latest trading session, marking a -0.55% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.1%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 3.27%.
Heading into today, shares of the maker of equipment for manufacturing semiconductors had lost 0.75% over the past month, lagging the Computer and Technology sector's gain of 1.45% and outpacing the S&P 500's loss of 3.02% in that time.
Wall Street will be looking for positivity from KLA as it approaches its next earnings report date. The company is expected to report EPS of $5.30, up 3.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.36 billion, up 3.02% from the year-ago period.
KLAC's full-year Zacks Consensus Estimates are calling for earnings of $24.26 per share and revenue of $10.22 billion. These results would represent year-over-year changes of +14.7% and +10.92%, respectively.
It is also important to note the recent changes to analyst estimates for KLA. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. KLA is currently a Zacks Rank #3 (Hold).
Digging into valuation, KLA currently has a Forward P/E ratio of 16.07. This represents a discount compared to its industry's average Forward P/E of 17.81.
Investors should also note that KLAC has a PEG ratio of 2.16 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.99 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 156, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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