KLA (KLAC) products are an integral part of the chipmaking process. It's no wonder that it's seeing bullish growth amid the artificial intelligence chip boom.
Taking a look at top and bottom line numbers, the company has posted rising EPS growth in each of the last five reports. Sales gains have also moved higher during the same period. Over the last three quarters KLA reported EPS gains of 22%, 28% and 33%, Revenue during that period grew 9%, 19% and 24% last quarter to $3.08 billion.
Also not surprisingly, it boasts strong ratings. KLA has a terrific 97 EPS Rating out of a best-possible 99. It carries a 94 Composite Rating. The Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better.
And on Wednesday, The Relative Strength (RS) Rating for KLA stock climbed into a new percentile as it got a lift from 70 to 74. The upgraded 74 RS Rating shows that KLA stock tops 74% of stocks, regardless of industry, for price performance this past year.
Decades of market research reveals that the top-performing stocks typically have an 80 or higher RS Rating as they begin their biggest climbs. See if KLA can continue to show renewed price strength and clear that threshold.
Milpitas, Calif.-based KLA makes test gear for chipmakers including process control and yield management systems.
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KLA is trying to complete a consolidation with an 896.32 entry. See if the stock can clear the breakout price in heavy trading. Its stock rose 1.3% to close at 759.15 Wednesday. It seems to be working its way back up to its all-time high 896.32, set on July 11 last year.
The company earns the No. 2 rank among its peers in the Electronics-Semiconductor Equipment industry group. Nova (NVMI) is the No. 1-ranked stock in the group.
IBD's unique RS Rating measures technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks stacks up against all the other stocks in our database.
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