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K L A Corp
K L A Corp
KLAC
$5.64
1.48%17%IBD Stock Analysis
- Shares have formed a cup-with-handle with a buy point at 399.06
- An alternative, more aggressive buy point is available at 385.99
- Relative Strength Rating is 82 of 99; Composite Rating now is 93
Industry Group Ranking
Emerging Pattern
Cup with Handle
* Not real-time data. All data shown was captured at
1:42PM EDT on
08/17/2022.
KLA Corp. (KLAC) is the IBD Stock Of The Day as the semiconductor equipment maker sees its stock nearing a buy point. KLAC stock dipped on Wednesday as the Nasdaq and major exchanges pulled back.
X
On the stock market today, KLAC stock dipped 1.5% to 375.09.
KLAC stock has formed a cup-with-handle base with a buy point of 399.06, according to IBD MarketSmith charts. An alternative analysis of its stock chart shows a 385.99 buy point.
KLA supplies advanced process control and yield management systems for makers of semiconductors, flat panel displays and other electronics.
Electronic chips are made from ultrathin silicon wafers. And the company holds a 60%-plus share of the wafer inspection and defect review market.
KLAC Stock: Market Share Trends
On July 28, KLA reported better-than-expected quarterly results. In the June quarter, KLA earned an adjusted $5.81 a share on sales of $2.49 billion. On a year-over-year basis, KLA earnings rose 31% while sales climbed 29%. Analysts had estimated earnings of $5.50 a share on sales of $2.43 billion.
The Milpitas, Calif.-based company in June increased its quarterly dividend 24% to $1.30 per share. KLA also said its board authorized the repurchase of up to $6 billion in KLAC stock.
Aside from the general outlook for semiconductor manufacturing equipment, analysts focus on KLA’s market share trends.
“For the past one to two years, we have been harping on a lack of wafer fab equipment (WFE) share gains during a time where the mix is highly favorable,” UBS analyst Timothy Arcuri said in a note to clients. “Now we have line of sight to WFE share gain of 100 basis points this year — more than KLAC has gained in any year in its history.”
At Susquehanna, analyst Mehdi Hosseini said: “All in all, our thesis remains unchanged that KLAC should continue to increase WFE market share given its already dominant position, especially since a wide adoption of (next-generation) Actinic Inspection has been pushed out.”
KLA Long Range Guidance
KLAC stock holds an IBD Relative Strength Rating of 82 out of a best-possible 99, according to IBD Stock Checkup. That means shares have outperformed 82% of stocks over the past 12 months. The best growth stocks typically have RS Ratings of at least 80.
KLA stock has an IBD Composite Rating of 93. IBD’s Composite Rating combines five separate proprietary scores into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
At the June investor day, KLA presented its growth projections for the next five years. KLA forecast 2026 earnings of $38 a share on sales of $14 billion. For the current fiscal year, KLAC stock analysts polled by FactSet expect earnings of $20.87 a share on sales of $9.14 billion.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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