KLA Corporation (KLAC) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - KLA's shares have significantly outperformed the market, with a 41.7% increase year-to-date, driven by strong earnings performance and positive market sentiment [1][2]. Financial Performance - KLA's stock has risen 13% over the past month and reached a 52-week high of $914.83 [1]. - The company reported an EPS of $8.41 in its last earnings report, exceeding the consensus estimate of $8.06 [2]. - For the current fiscal year, KLA is projected to achieve earnings of $32.46 per share on revenues of $12.05 billion, reflecting a 36.73% increase in EPS and a 22.77% increase in revenues [3]. - The next fiscal year forecasts an EPS of $33.04 and revenues of $12.34 billion, indicating year-over-year growth of 1.8% and 2.4%, respectively [3]. Valuation Metrics - KLA's current valuation metrics show a Price-to-Earnings (P/E) ratio of 27.5X for the current fiscal year, which is above the peer industry average of 18.7X [7]. - The trailing cash flow basis shows a valuation of 30.6X compared to the peer group's average of 11.6X [7]. - The stock has a PEG ratio of 1.7, which does not place it among the top value stocks [7]. Style Scores and Zacks Rank - KLA has a Value Score of C, a Growth Score of B, and a Momentum Score of A, resulting in a VGM Score of B [6]. - The stock holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8]. - KLA's combination of a strong Zacks Rank and Style Scores suggests potential for further gains [8].