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Here's Why KLA (KLAC) Fell More Than Broader Market
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KLA (KLAC - Free Report) closed at $700 in the latest trading session, marking a -0.79% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.53%.
The maker of equipment for manufacturing semiconductors's stock has dropped by 4.47% in the past month, exceeding the Computer and Technology sector's loss of 7.14% and lagging the S&P 500's loss of 4.03%.
The upcoming earnings release of KLA will be of great interest to investors. In that report, analysts expect KLA to post earnings of $8.07 per share. This would mark year-over-year growth of 53.42%. Our most recent consensus estimate is calling for quarterly revenue of $3.01 billion, up 27.4% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $31.59 per share and revenue of $11.91 billion, which would represent changes of +33.07% and +21.35%, respectively, from the prior year.
Any recent changes to analyst estimates for KLA should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, KLA boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 22.33 right now. This represents a premium compared to its industry's average Forward P/E of 19.29.
Investors should also note that KLAC has a PEG ratio of 1.43 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Electronics - Miscellaneous Products industry stood at 1.43 at the close of the market yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% 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.
To follow KLAC in the coming trading sessions, be sure to utilize Zacks.com.
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Here's Why KLA (KLAC) Fell More Than Broader Market
KLA (KLAC - Free Report) closed at $700 in the latest trading session, marking a -0.79% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.53%.
The maker of equipment for manufacturing semiconductors's stock has dropped by 4.47% in the past month, exceeding the Computer and Technology sector's loss of 7.14% and lagging the S&P 500's loss of 4.03%.
The upcoming earnings release of KLA will be of great interest to investors. In that report, analysts expect KLA to post earnings of $8.07 per share. This would mark year-over-year growth of 53.42%. Our most recent consensus estimate is calling for quarterly revenue of $3.01 billion, up 27.4% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $31.59 per share and revenue of $11.91 billion, which would represent changes of +33.07% and +21.35%, respectively, from the prior year.
Any recent changes to analyst estimates for KLA should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, KLA boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 22.33 right now. This represents a premium compared to its industry's average Forward P/E of 19.29.
Investors should also note that KLAC has a PEG ratio of 1.43 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Electronics - Miscellaneous Products industry stood at 1.43 at the close of the market yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% 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.
To follow KLAC in the coming trading sessions, be sure to utilize Zacks.com.