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KLA (KLAC) Exceeds Market Returns: Some Facts to Consider
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KLA (KLAC - Free Report) ended the recent trading session at $468.05, demonstrating a +1.51% swing from the preceding day's closing price. This change outpaced the S&P 500's 1.18% gain on the day. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.6%.
Shares of the maker of equipment for manufacturing semiconductors witnessed a loss of 7.26% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.27% and the S&P 500's loss of 5.17%.
The investment community will be paying close attention to the earnings performance of KLA in its upcoming release. The company is slated to reveal its earnings on October 25, 2023. The company is forecasted to report an EPS of $5.39, showcasing a 23.65% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.36 billion, down 13.29% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $22.11 per share and revenue of $9.54 billion. These totals would mark changes of -12.85% and -10.2%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KLA. Recent revisions tend to reflect the latest near-term business trends. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, KLA holds a Zacks Rank of #2 (Buy).
From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 20.85. For comparison, its industry has an average Forward P/E of 19.89, which means KLA is trading at a premium to the group.
Meanwhile, KLAC's PEG ratio is currently 2.21. 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 average PEG ratio for the Electronics - Miscellaneous Products industry stood at 2.01 at the close of the market yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 173, this industry ranks in the bottom 32% of all industries, numbering over 250.
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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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KLA (KLAC) Exceeds Market Returns: Some Facts to Consider
KLA (KLAC - Free Report) ended the recent trading session at $468.05, demonstrating a +1.51% swing from the preceding day's closing price. This change outpaced the S&P 500's 1.18% gain on the day. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.6%.
Shares of the maker of equipment for manufacturing semiconductors witnessed a loss of 7.26% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.27% and the S&P 500's loss of 5.17%.
The investment community will be paying close attention to the earnings performance of KLA in its upcoming release. The company is slated to reveal its earnings on October 25, 2023. The company is forecasted to report an EPS of $5.39, showcasing a 23.65% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.36 billion, down 13.29% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $22.11 per share and revenue of $9.54 billion. These totals would mark changes of -12.85% and -10.2%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KLA. Recent revisions tend to reflect the latest near-term business trends. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, KLA holds a Zacks Rank of #2 (Buy).
From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 20.85. For comparison, its industry has an average Forward P/E of 19.89, which means KLA is trading at a premium to the group.
Meanwhile, KLAC's PEG ratio is currently 2.21. 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 average PEG ratio for the Electronics - Miscellaneous Products industry stood at 2.01 at the close of the market yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 173, this industry ranks in the bottom 32% of all industries, numbering over 250.
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 follow all of these stock-moving metrics, and many more, on Zacks.com.