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KLA (KLAC) Stock Moves -0.46%: What You Should Know

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In the latest market close, KLA (KLAC - Free Report) reached $683.06, with a -0.46% movement compared to the previous day. This change was narrower than the S&P 500's daily loss of 1.54%. Meanwhile, the Dow experienced a drop of 1.63%, and the technology-dominated Nasdaq saw a decrease of 1.63%.

Coming into today, shares of the maker of equipment for manufacturing semiconductors had gained 6.12% in the past month. In that same time, the Computer and Technology sector gained 0.11%, while the S&P 500 lost 2.2%.

The upcoming earnings release of KLA will be of great interest to investors. The company's earnings report is expected on January 30, 2025. The company's earnings per share (EPS) are projected to be $7.73, reflecting a 25.49% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.93 billion, up 17.98% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $30.37 per share and revenue of $11.6 billion, which would represent changes of +27.93% and +18.19%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for KLA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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 witnessed a 0.78% decrease. Currently, KLA is carrying a Zacks Rank of #4 (Sell).

Looking at valuation, KLA is presently trading at a Forward P/E ratio of 22.59. This valuation marks a premium compared to its industry's average Forward P/E of 19.2.

It is also worth noting that KLAC currently has a PEG ratio of 1.48. 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. KLAC's industry had an average PEG ratio of 1.58 as of yesterday's close.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 37% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


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