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KLA (KLAC) Stock Moves -1.06%: What You Should Know

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The most recent trading session ended with KLA (KLAC - Free Report) standing at $795.75, reflecting a -1.06% shift from the previouse trading day's closing. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.23%.

The maker of equipment for manufacturing semiconductors's stock has dropped by 2.28% in the past month, falling short of the Computer and Technology sector's gain of 1.79% and the S&P 500's gain of 2.55%.

Analysts and investors alike will be keeping a close eye on the performance of KLA in its upcoming earnings disclosure. The company is predicted to post an EPS of $7.02, indicating a 22.3% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.76 billion, showing a 14.98% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $29.09 per share and a revenue of $11.52 billion, representing changes of +22.54% and +17.39%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for KLA. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 an unchanged state. As of now, KLA holds a Zacks Rank of #3 (Hold).

From a valuation perspective, KLA is currently exchanging hands at a Forward P/E ratio of 27.64. This represents a premium compared to its industry's average Forward P/E of 20.57.

One should further note that KLAC currently holds a PEG ratio of 1.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 2.19.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 36% 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.


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