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KLA a Superstar in High-Flying Semiconductor Industry

By:
Lucas Downey
Published: May 21, 2024, 18:08 GMT+00:00

Small things are driving big business. Look at the semiconductor industry; it’s on fire right now.

Nasdaq. FX Empire

In this article:

That success extends to suppliers like KLA Corp. (KLAC), which sports a profit margin that’s 21.3% higher than the industry average, recently brought in $2.36 billion in quarterly revenue, and raised its dividend for a 14th consecutive year.

KLA supplies process control and yield management solutions for the semiconductor and related nano-electronics industries. The consensus expectation for fourth-quarter revenue is $2.52 billion, a jump of 7.1% from a year prior, with earnings for the same period expected to rise by 13.1%.

It’s no wonder KLAC shares are up 33% in 2024 so far – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

KLA Shares Experiencing Heavy Demand

Institutional volumes reveal plenty. In the last year, KLAC has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in KLAC shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.mapsignals.com

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental backdrop going on with KLA.

KLA Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, KLAC has had incredible sales and EPS growth in recent years:

  • 3-year sales growth rate (+22%)
  • 3-year EPS growth rate (+49.2%)

Source: FactSet

EPS is estimated to ramp higher this year by +22.5%.

Now it makes sense why the stock has been powering to new heights. KLAC has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

KLA has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report 16 times in the last year. The blue bars below show when KLAC was a top pick…driving value higher and higher:

Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

KLA Price Prediction

The KLAC rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in KLAC at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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