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Headquartered in Milpitas, California, KLA Corporation (KLAC) is a global leader in process control and yield management solutions for the semiconductor and electronics industries, with a market cap of $107.57 billion. KLA specializes in providing advanced inspection, metrology, and data analytics systems that play a critical role in ensuring the quality and performance of semiconductor devices.
Shares of KLAC have significantly outperformed the broader market over the past year. The stock has gained 65.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.5%. Also, in 2024, KLAC is up 37.5% compared to SPX’s 17.7% rise on a YTD basis.
Narrowing the focus, KLAC has also outperformed compared to the VanEck Semiconductor ETF (SMH). The exchange-traded fund has gained about 62.7% over the past year. Moreover, the ETF’s 38.7% gains on a YTD basis outshines the stock’s returns over the same time frame.
KLAC stock declined nearly 6% on Jul. 24 despite its strong fiscal Q4 performance. The company reported non-GAAP net income and EPS of $893 million and $6.60, up 24.9% and 25.5%, respectively, from the year-ago period.
For the current fiscal year, ending in June 2025, analysts expect KLAC’s EPS to grow 22.5% year over year to $29.09 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 25 analysts covering KLAC stock, the consensus rating is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, one “Moderate Buy,” and 10 “Holds.”
This configuration is more bullish than a month ago, with 13 analysts suggesting a “Strong Buy.”
On Aug. 6, Joseph Quatrochi from Wells Fargo maintained a “Buy” rating on KLA Corporation, with a price target of $950, implying a potential upside of 18.9% from current levels.
The mean price target is $875, representing a premium of 9.5% compared to KLAC’s current price levels. The Street-high price target of $980 suggests an upside potential of 22.7%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
