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KLA (KLAC) Stock Drops Despite Market Gains: Important Facts to Note
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KLA (KLAC - Free Report) closed the latest trading day at $759.53, indicating a -1.38% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Shares of the maker of equipment for manufacturing semiconductors witnessed a gain of 12.91% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.71% and the S&P 500's gain of 4.14%.
Analysts and investors alike will be keeping a close eye on the performance of KLA in its upcoming earnings disclosure. In that report, analysts expect KLA to post earnings of $6.08 per share. This would mark year-over-year growth of 12.59%. Simultaneously, our latest consensus estimate expects the revenue to be $2.5 billion, showing a 6.34% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $23.30 per share and revenue of $9.75 billion. These totals would mark changes of -8.16% and -7.13%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for KLA. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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, 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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. KLA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, KLA is presently being traded at a Forward P/E ratio of 33.05. This represents a premium compared to its industry's average Forward P/E of 21.38.
It's also important to note that KLAC currently trades at a PEG ratio of 3.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KLAC's industry had an average PEG ratio of 2.45 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 191, finds itself in the bottom 25% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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KLA (KLAC) Stock Drops Despite Market Gains: Important Facts to Note
KLA (KLAC - Free Report) closed the latest trading day at $759.53, indicating a -1.38% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Shares of the maker of equipment for manufacturing semiconductors witnessed a gain of 12.91% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.71% and the S&P 500's gain of 4.14%.
Analysts and investors alike will be keeping a close eye on the performance of KLA in its upcoming earnings disclosure. In that report, analysts expect KLA to post earnings of $6.08 per share. This would mark year-over-year growth of 12.59%. Simultaneously, our latest consensus estimate expects the revenue to be $2.5 billion, showing a 6.34% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $23.30 per share and revenue of $9.75 billion. These totals would mark changes of -8.16% and -7.13%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for KLA. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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, 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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. KLA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, KLA is presently being traded at a Forward P/E ratio of 33.05. This represents a premium compared to its industry's average Forward P/E of 21.38.
It's also important to note that KLAC currently trades at a PEG ratio of 3.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KLAC's industry had an average PEG ratio of 2.45 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 191, finds itself in the bottom 25% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.