Latest news with #KLAC
Yahoo
5 days ago
- Business
- Yahoo
KLA Corporation (KLAC) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of KLA (KLAC)? Shares have been on the move with the stock up 13% over the past month. The stock hit a new 52-week high of $914.83 in the previous session. KLA has gained 41.7% since the start of the year compared to the 1.6% gain for the Zacks Computer and Technology sector and the -19.5% return for the Zacks Electronics - Miscellaneous Products industry. The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 30, 2025, KLA reported EPS of $8.41 versus consensus estimate of $8.06. For the current fiscal year, KLA is expected to post earnings of $32.46 per share on $12.05 billion in revenues. This represents a 36.73% change in EPS on a 22.77% change in revenues. For the next fiscal year, the company is expected to earn $33.04 per share on $12.34 billion in revenues. This represents a year-over-year change of 1.8% and 2.4%, respectively. Though KLA has recently hit a 52-week high, what is next for KLA? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself. On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style. KLA has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B. In terms of its value breakdown, the stock currently trades at 27.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.7X. On a trailing cash flow basis, the stock currently trades at 30.6X versus its peer group's average of 11.6X. Additionally, the stock has a PEG ratio of 1.7. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective. We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, KLA currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if KLA fits the bill. Thus, it seems as though KLA shares could still be poised for more gains ahead. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
11-06-2025
- Business
- Yahoo
Is KLA (KLAC) Outperforming Other Computer and Technology Stocks This Year?
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. KLA (KLAC) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out. KLA is a member of our Computer and Technology group, which includes 608 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. KLA is currently sporting a Zacks Rank of #1 (Strong Buy). The Zacks Consensus Estimate for KLAC's full-year earnings has moved 2.5% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Based on the latest available data, KLAC has gained about 35.9% so far this year. In comparison, Computer and Technology companies have returned an average of 2.4%. This means that KLA is performing better than its sector in terms of year-to-date returns. Another Computer and Technology stock, which has outperformed the sector so far this year, is Allient (ALNT). The stock has returned 40.2% year-to-date. Over the past three months, Allient's consensus EPS estimate for the current year has increased 6.1%. The stock currently has a Zacks Rank #1 (Strong Buy). Breaking things down more, KLA is a member of the Electronics - Miscellaneous Products industry, which includes 34 individual companies and currently sits at #149 in the Zacks Industry Rank. On average, this group has gained an average of 11.9% so far this year, meaning that KLAC is performing better in terms of year-to-date returns. Allient, however, belongs to the Electronics - Miscellaneous Components industry. Currently, this 26-stock industry is ranked #92. The industry has moved +6% so far this year. Investors interested in the Computer and Technology sector may want to keep a close eye on KLA and Allient as they attempt to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report Allient Inc. (ALNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
21-05-2025
- Business
- Globe and Mail
Should You Buy, Sell or Hold Applied Materials Stock Post Q2 Earnings?
Applied Materials AMAT shares have lost 5.3% since it reported financial results for the second quarter of fiscal 2025 on May 15. Though the company's second-quarter top and bottom lines surpassed the Zacks Consensus Estimate, declining revenues in the Chinese market weighed on the investors' sentiments. The year 2025 has remained highly volatile for AMAT stock, with its share price rising mere 1.9% year to date. The stock has also underperformed other semiconductor players, including Lam Research LRCX, KLA Corporation KLAC and ASML Holding ASML. The underperformance of AMAT's share price, along with concerns related to China sales prospects, raises the question: Should investors buy, hold or sell AMAT stock? Declining China Sales: A Key Concern for AMAT's Prospects A major headwind for Applied Materials is increasing U.S.-China tensions and export restrictions on semiconductor manufacturing equipment. China remains a crucial market for Applied Materials, accounting for a significant portion of total revenues. However, U.S. government restrictions on selling advanced semiconductor equipment to Chinese manufacturers are hurting Applied Materials' sales and growth outlook. In the second quarter of fiscal 2025, Applied Materials' China sales plunged 37.3% year over year to $1.77 billion. China market's contribution to total revenues also shrank to 25% from the year-ago quarter's 43%. This marked the third consecutive quarter of a year-over-year fall in China revenues. Earlier, management had acknowledged that the company faces elevated uncertainty in China due to ongoing geopolitical tensions and regulatory scrutiny. If stricter export controls are imposed, Applied Materials' long-term revenue potential could take a hit, as Chinese chipmakers are forced to turn to domestic alternatives or non-U.S. suppliers. However, despite the headwinds, AMAT has several upsides that enable the company to perform well. AMAT Leads the Market With Superior Technology Applied Materials is well-positioned to capitalize on the demand for AI-driven semiconductors that has become the driving force for this industry. AMAT has made significant strides in cutting-edge chip manufacturing, particularly in gate-all-around (GAA) transistors, high-bandwidth memory and advanced packaging. These innovations are critical to enabling faster, more energy-efficient AI processing. Applied Materials' revenues from advanced semiconductor nodes surpassed $2.5 billion in fiscal 2024, and management expects this figure to double in fiscal 2025. The transition from FinFET to GAA transistors is expanding AMAT's total addressable market by 15%, while Applied Materials' revenues in this segment are projected to grow 30% per wafer fab capacity expansion. The company is also on track to secure more than 50% of the market share in GAA and backside power delivery, solidifying its leadership in the AI computing era. The advanced packaging segment has become an increasingly critical part of Applied Materials' business, with revenues tripling over the past four years to $1.7 billion in fiscal 2024. AMAT has secured volume orders from leading-edge customers for its Integrated Hybrid Bonding technology, strengthening its position in next-generation chip manufacturing. The upcoming EPIC Center in Silicon Valley, expected to go live in 2026, will further drive innovation in semiconductor packaging and process technology. In its most recent earnings report, AMAT highlighted that the company is well-positioned to gain from demand growth in gate-all-around transistors, backside power delivery, and high-bandwidth memory. Applied Materials' gross margins hit 49.2% in the second quarter of fiscal 2025, which was the highest since 2000. Moreover, the company expects its advanced DRAM revenues to grow more than 40% in 2025, driven by DDR5 and HBM. Due to all these positive factors, analysts are optimistic about the stock's future growth. The Zacks Consensus Estimate for fiscal 2025 and 2026 revenues is projected to grow 5.96% and 5.7%, respectively. The Zacks Consensus Estimate for 2025 and 2026 earnings is projected to grow 9.2% and 5%, respectively. Applied Materials is on track to sustain its momentum. Additionally, the company has consistently outperformed earnings expectations, delivering an average surprise of 4.94% over the last four quarters, reflecting its strong execution capabilities. AMAT's Valuation Offers Upside Potential Applied Materials is trading at a 12-month forward P/E ratio of 17.09, significantly below the industry average of 25.5. Given its dominance in semiconductor equipment and AI-driven chip manufacturing, this valuation discount suggests strong upside potential over the long term. Applied Materials is also trading at a lower P/E multiple than other semiconductor companies, including Lam Research, KLA Corporation and ASML Holding. Currently, Lam Research, KLA Corporation and ASML Holding have a P/E multiple of 21.25X, 24.1X and 26.2X, respectively. Applied Materials Forward 12 Months (P/E) Valuation Chart Conclusion: Hold AMAT for Now Applied Materials remains a key player in semiconductor manufacturing, with a strong position in AI-driven chip development, advanced packaging and next-generation process technology. For investors, retaining AMAT is the best approach. Currently, Applied Materials carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC): Free Stock Analysis Report ASML Holding N.V. (ASML): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report
Yahoo
20-05-2025
- Business
- Yahoo
Has KLA (KLAC) Outpaced Other Computer and Technology Stocks This Year?
Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. KLA (KLAC) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question. KLA is a member of the Computer and Technology sector. This group includes 607 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. KLA is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for KLAC's full-year earnings has moved 2.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. According to our latest data, KLAC has moved about 24.9% on a year-to-date basis. At the same time, Computer and Technology stocks have lost an average of 1.4%. As we can see, KLA is performing better than its sector in the calendar year. One other Computer and Technology stock that has outperformed the sector so far this year is Domo (DOMO). The stock is up 23% year-to-date. The consensus estimate for Domo's current year EPS has increased 8.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Looking more specifically, KLA belongs to the Electronics - Miscellaneous Products industry, which includes 34 individual stocks and currently sits at #157 in the Zacks Industry Rank. On average, this group has gained an average of 5.7% so far this year, meaning that KLAC is performing better in terms of year-to-date returns. Domo, however, belongs to the Internet - Software industry. Currently, this 167-stock industry is ranked #73. The industry has moved +7% so far this year. Investors with an interest in Computer and Technology stocks should continue to track KLA and Domo. These stocks will be looking to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report Domo, Inc. (DOMO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
30-04-2025
- Business
- Yahoo
KLA: Fiscal Q3 Earnings Snapshot
MILPITAS, Calif. (AP) — MILPITAS, Calif. (AP) — KLA Corporation (KLAC) on Wednesday reported fiscal third-quarter profit of $1.09 billion. The Milpitas, California-based company said it had profit of $8.16 per share. Earnings, adjusted for one-time gains and costs, came to $8.41 per share. The results beat Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $8.06 per share. The maker of equipment for manufacturing semiconductors posted revenue of $3.06 billion in the period, also beating Street forecasts. Eight analysts surveyed by Zacks expected $3.01 billion. For the current quarter ending in June, KLA expects its per-share earnings to range from $7.75 to $9.31. The company said it expects revenue in the range of $2.93 billion to $3.23 billion for the fiscal fourth quarter. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on KLAC at Sign in to access your portfolio
