KLA (KLAC) - 39.10% Below 52-Week High: Buy or Wait?

Stock Details

KLA Corporation (KLAC), a prominent company in the technology sector within the semiconductor equipment & materials industry, is based in United States and primarily trades on the NMS.Currently, the stock is trading at $187.19. Over the past 52 weeks, it has ranged between $83.22 and $307.37. This places the current price at 60.9% of its 52-week high and 124.9% above its 52-week low. Recent trading volume was recorded at 6,731,195. The 14-day Relative Strength Index (RSI) stands at 37.08, suggesting neutral conditions. The stock is currently trading below its 50-day moving average of $221.07 by 15.33%. Similarly, it is above its 200-day moving average of $161.90 by 15.62%. The MACD histogram is -5.60, indicating bearish momentum (MACD Line: -11.56, Signal Line: -5.96). The International Securities Identification Number (ISIN) for this stock is US4824801009.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

48.35

Above market average

Forward P/E

27.58

Earnings expected to grow

PEG Ratio

1.75

Reasonably valued

Price to Book

40.42

EV/EBITDA

39.08

EPS (TTM)

$3.73

Price to Sales

17.35

Q:How is KLAC valued relative to its earnings and growth?

KLA Corporation trades at a P/E ratio of 48.35, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 27.58 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.75 indicates reasonable value when growth is considered.

Q:What is KLAC's risk profile compared to the market?

Risk profile data is not available for this stock.

Performance & Growth

Profit Margin

35.57%

Operating Margin

42.49%

EBITDA

$6.05B

Return on Equity

87.50%

Return on Assets

20.80%

Revenue Growth (YoY)

15.20%

Earnings Growth (YoY)

14.70%

Q:How profitable and efficient is KLAC's business model?

KLA Corporation achieves a profit margin of 35.57%, meaning it retains $35.57 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 42.49% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 87.50% and ROA at 20.80%, the company generates strong returns on invested capital.

Q:What are KLAC's recent growth trends?

KLA Corporation's revenue grew by 15.20% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 14.70% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against Semiconductor Equipment & Materials industry averages for proper context.

Dividend Information

Dividend Per Share

$0.92

Dividend Yield

0.54%

Ex-Dividend Date

May 18, 2026

Dividend Date

Jun 2, 2026

Q:What dividend income can investors expect from KLAC?

KLA Corporation offers a dividend yield of 0.54%, paying $0.92 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of May 18, 2026.

Q:How reliable is KLAC's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - KLA Corporation pays $0.92 per share in dividends against earnings of $3.73 per share, resulting in a payout ratio of 24.66%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Jun 2, 2026.

Company Size & Market

Market Cap

$235.6B

Revenue (TTM)

$13.58B

Revenue/Share (TTM)

$10.35

Shares Outstanding

1.31B

Book Value/Share

$4.46

Asset Type

EQUITY

Q:What is KLAC's market capitalization and position?

KLA Corporation has a market capitalization of $235.6B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 1.31B shares outstanding, the company's ownership is widely distributed. As a major player in the Semiconductor Equipment & Materials industry, it competes with other firms in this sector.

Q:How does KLAC's price compare to its book value?

KLA Corporation's book value per share is $4.46, while the current stock price is $187.19, resulting in a price-to-book (P/B) ratio of 41.96. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$228.59

22.12% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for KLAC?

28 analysts cover KLAC with 43% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $228.59 implies 22.1% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on KLAC?

Current analyst recommendations:4 Strong Buy, 8 Buy, 15 Hold, 01 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 31, 2026, 02:10 AM

Technical Indicators

RSI (14-day)

37.08

Neutral

50-Day Moving Average

$221.07

-15.33% below MA-50

200-Day Moving Average

$161.90

15.62% above MA-200

MACD Line

-11.56

MACD Signal

-5.96

MACD Histogram

-5.60

Bearish

Q:What does KLAC's RSI value tell investors?

The RSI (Relative Strength Index) for KLAC is currently 37.08, indicating the stock is showing bearish momentum (30-40 range). Selling pressure is evident but not extreme. This often occurs during pullbacks in uptrends or early stages of downtrends. Combined with the price being below the 50-day moving average, this confirms bearish conditions.

Q:How should traders interpret KLAC's MACD and moving average crossovers?

MACD analysis shows the MACD line at -11.56 below the signal line at -5.96, with histogram at -5.60. This bearish crossover indicates downward pressure. The wide histogram confirms strong momentum. The 50-day MA ($221.07) is above the 200-day MA ($161.90), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently between the MAs, suggesting transition.

Indicators last updated: Jul 31, 2026, 02:32 PM

KLA Corporation (KLAC) Stock