KLAC Stock: Chip Equipment Maker Market Share Trends Key to Outlook

UCK Corp

UCK Corp





Analysis of MICI stocks

  • The shares formed a cup with handle with a buy point at 399.06
  • An alternative and more aggressive buy point is available at 385.99
  • The relative strength rating is 82 out of 99; Composite rating is now 93

composite score

Industry group ranking

Emerging model

Mug with handle

* No real-time data. All data displayed was captured at 1:42 p.m. EDT on 08/17/2022.

KLA Corp. (KLAC) is today’s IBD stock as the semiconductor equipment maker sees its stock approaching a buy point. KLAC stock fell on Wednesday as the Nasdaq and major exchanges retreated.


In the stock market today, KLAC stock fell 1.5% to 375.21.

KLAC stock formed a cup-handle base with a buy point of 399.06, according to IBD MarketSmith charts. An alternative analysis of its stock chart shows a buy point of 385.99.

KLA provides advanced process control and yield management systems for manufacturers of semiconductors, flat panel displays and other electronic devices.

Microchips are made from ultra-thin silicon wafers. And the company has over 60% market share in wafer inspection and defect review.

KLAC Share: Market Share Trends

On July 28, KLA announced better than expected quarterly results. During the June quarter, KLA earned an adjusted $5.81 per share on sales of $2.49 billion. Year-over-year, KLA’s profits rose 31%, while sales soared 29%. Analysts had estimated earnings of $5.50 a share on sales of $2.43 billion.

The Milpitas, Calif.-based company in June raised its quarterly dividend by 24% to $1.30 per share. KLA also said its board has authorized the repurchase of up to $6 billion of KLAC stock.

Besides the general outlook for semiconductor manufacturing equipment, analysts focus on KLA market share trends.

“For the past one to two years, we have been emphasizing the lack of wafer fabrication equipment (WFE) share gains at a time when the mix is ​​very favourable,” UBS analyst Timothy Arcuri said in a note. to customers. “Now we have our sights set on a 100 basis point WFE share gain this year – more than KLAC has gained in any year in its history.”

At Susquehanna, analyst Mehdi Hosseini said, “Overall, our thesis remains unchanged that KLAC should continue to grow its WFE market share given its already dominant position, especially as broad adoption actinic (next-gen) inspection has been pushed back.”

KLA Long Range Guidance

KLAC’s stock holds an IBD Relative Strength Rating of 82 out of the best possible 99, according to IBD Stock Checkup. This means that stocks 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. The IBD composite rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a composite rating of 90 or higher.

At June’s Investor Day, KLA presented its growth projections for the next five years. KLA forecasts earnings of $38 per share for 2026 on sales of $14 billion. For the current fiscal year, KLAC stock analysts polled by FactSet expect earnings of $20.87 per 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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