Back to top

Image: Bigstock

KLA (KLAC) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

KLA (KLAC - Free Report) closed at $329.49 in the latest trading session, marking a +1% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.07%.

Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had gained 4.58% over the past month. This has outpaced the Computer and Technology sector's gain of 1.72% and the S&P 500's gain of 2.02% in that time.

Investors will be hoping for strength from KLA as it approaches its next earnings release, which is expected to be July 28, 2022. On that day, KLA is projected to report earnings of $5.46 per share, which would represent year-over-year growth of 23.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 25.69% from the year-ago period.

Any recent changes to analyst estimates for KLA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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 1.34% lower. KLA is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 13.45 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.34.

Also, we should mention that KLAC has a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Electronics - Miscellaneous Products stocks are, on average, holding a PEG ratio of 1.79 based on yesterday's closing prices.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 47% 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.


See More Zacks Research for These Tickers


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


KLA Corporation (KLAC) - free report >>

Published in