Back to top

Image: Bigstock

KLA (KLAC) Dips More Than Broader Market: What You Should Know

Read MoreHide Full Article

In the latest market close, KLA (KLAC - Free Report) reached $670.25, with a -1.81% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.04%.

The the stock of maker of equipment for manufacturing semiconductors has fallen by 6.63% in the past month, lagging the Computer and Technology sector's gain of 4.44% and the S&P 500's gain of 3.77%.

Investors will be eagerly watching for the performance of KLA in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 30, 2024. On that day, KLA is projected to report earnings of $7.03 per share, which would represent year-over-year growth of 22.47%. Alongside, our most recent consensus estimate is anticipating revenue of $2.76 billion, indicating a 14.98% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $29.09 per share and revenue of $11.48 billion, which would represent changes of +22.54% and +16.99%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KLA. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, KLA holds a Zacks Rank of #4 (Sell).

Looking at its valuation, KLA is holding a Forward P/E ratio of 23.46. For comparison, its industry has an average Forward P/E of 18.81, which means KLA is trading at a premium to the group.

We can additionally observe that KLAC currently boasts a PEG ratio of 1.36. 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 industry currently had an average PEG ratio of 2.1 as of yesterday's close.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 145, finds itself in the bottom 43% echelons of all 250+ industries.

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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


KLA Corporation (KLAC) - free report >>

Published in