KLA Corporation (KLAC) Hits Fresh High: Is There Still Room to Run?

Company Performance - KLA's stock has increased by 5.9% over the past month and reached a new 52-week high of $931.96, with a year-to-date gain of 46.5% compared to 8.1% for the Zacks Computer and Technology sector and 12.4% for the Zacks Electronics - Miscellaneous Products industry [1] - KLA has consistently beaten the Zacks Consensus Estimate in the last four quarters, reporting EPS of $8.41 against an estimate of $8.06 in its last earnings report [2] Earnings Projections - For the current fiscal year, KLA is expected to post earnings of $33.16 per share on revenues of $12.05 billion, with a year-over-year change of 2.15% [3] - For the next fiscal year, earnings are projected to be $37.03 per share on revenues of $12.38 billion, reflecting a year-over-year change of 2.77% [3] Valuation Metrics - KLA's stock trades at 27.8X current fiscal year EPS estimates, which is a premium compared to the peer industry average of 19.5X, and at 31.7X on a trailing cash flow basis versus an average of 13.5X for its peers [7] - The stock has a PEG ratio of 1.72, indicating it is not in the top echelon from a value perspective [7] Zacks Rank and Style Scores - KLA holds a Zacks Rank of 2 (Buy) due to a solid earnings estimate revision trend, which aligns with the recommendation for investors to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) [8] - The company has a Value Score of C, Growth Score of B, and Momentum Score of B, resulting in a combined VGM Score of B [6] Industry Comparison - Universal Electronics Inc. (UEIC) is a notable peer with a Zacks Rank of 2 (Buy), and it has strong scores in Value (A) and Growth (A), although a lower Momentum Score (D) [9] - UEIC is expected to post earnings of $0.52 per share on revenues of $399.18 million for the current fiscal year, having beaten the consensus estimate by 20.00% last quarter [10] - The Electronics - Miscellaneous Products industry is positioned in the top 31% of all industries, indicating favorable conditions for both KLA and UEIC [11]