Group 1: Company Performance - KLA Corporation (NASDAQ:KLAC) is trading at an all-time high with a share price of $1,279.60 on December 26, reflecting impressive year-to-date gains of 100.59% [1] - Analysts expect KLA to report approximately $3.25 billion in revenue and a GAAP EPS of $8.49 for fiscal Q2 2026, with earnings release scheduled for January 28 [2] - Blayne Curtis from Jefferies upgraded KLA from Market Perform to Outperform with a price target of $1,500, citing a strong outlook for wafer fab equipment growth in 2026 and 2027 [4] Group 2: Industry Insights - Arya from Bank of America Securities believes US semiconductor stocks are well-positioned for 2026, which he sees as a pivotal year for IT upgrades and AI utilization [3] - The semiconductor industry is expected to experience increased scrutiny regarding AI return on investment, but this may be mitigated by rapid advancements in AI LLM builders and AI factories [3] - KLA Corporation specializes in advanced process control equipment for the semiconductor and electronics industries, aiding chipmakers in improving yields and quality in microchip production [5]

KLA Corporation (NASDAQ:KLAC) is one of the best forever stocks to buy according to hedge funds. On December 15, analysts at Jefferies upgraded KLA Corporation (NASDAQ:KLAC) to a Buy, buoyed by accelerating artificial intelligence driven spending. Additionally, the research firm echoed a strong outlook for demand for leading-edge and advanced packaging. Is KLA Corporation (KLAC) One of the Best Forever Stocks to Buy According to Hedge Funds? Photo by Umberto on Unsplash Jefferies expects the company to ...

Core Insights - The article discusses the 14 best "forever stocks" recommended by hedge funds, highlighting concerns over high valuations as many stocks are trading above historical norms, suggesting a potential rotation in investment strategies as 2026 approaches [1][2]. Investment Strategy - There is a noticeable shift from large-cap growth stocks to large-cap value stocks, indicating a defensive posture among investors in anticipation of market changes in the coming year [3]. - Analysts suggest that diversifying beyond large-cap stocks is prudent, especially given the recent resurgence of US equities led by large-cap tech companies [3]. Market Trends - Significant discounts on value stocks are noted, with current valuations being cheaper than historical averages, presenting a potential buying opportunity for investors [5]. - The article emphasizes the importance of stability and growth in selecting "forever stocks," which are favored by elite hedge funds [7]. Company Highlights - **KLA Corporation (NASDAQ:KLAC)**: - Upgraded to a Buy by Jefferies due to accelerating AI-driven spending, with revenue forecasts raised to $14 billion for 2026 and $15.5 billion for 2027 [10][12]. - Analysts expect the company to benefit from increased capital expenditure in the semiconductor sector [11]. - **The TJX Companies, Inc. (NYSE:TJX)**: - Maintains a Buy rating from UBS, with strong market share gains against department stores and a commitment to shareholder value through consistent dividend payments [15][18]. - Expected to achieve a 13% compound annual growth rate from 2021 to 2025, despite facing challenges such as tariffs and consumer uncertainty [18].