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KLA (KLAC) Stock Moves -0.73%: What You Should Know

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KLA (KLAC - Free Report) ended the recent trading session at $781.67, demonstrating a -0.73% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.96%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, lost 1.18%.

The maker of equipment for manufacturing semiconductors's stock has climbed by 12.04% in the past month, exceeding the Computer and Technology sector's gain of 7.35% and the S&P 500's gain of 4.3%.

Market participants will be closely following the financial results of KLA in its upcoming release. On that day, KLA is projected to report earnings of $7.03 per share, which would represent year-over-year growth of 22.47%. Simultaneously, our latest consensus estimate expects the revenue to be $2.76 billion, showing a 14.98% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $29.19 per share and revenue of $11.51 billion, indicating changes of +22.96% and +17.35%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for KLA. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.32% upward. As of now, KLA holds a Zacks Rank of #3 (Hold).

Digging into valuation, KLA currently has a Forward P/E ratio of 26.98. This denotes a premium relative to the industry's average Forward P/E of 17.85.

We can additionally observe that KLAC currently boasts a PEG ratio of 1.56. 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 Electronics - Miscellaneous Products was holding an average PEG ratio of 2.27 at yesterday's closing price.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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