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Here's Why KLA (KLAC) is a Strong Momentum Stock
KLACKLA(KLAC) ZACKS·2025-02-04 15:55

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings and cash flow [5] - The Momentum Score helps investors capitalize on price trends, utilizing factors like weekly price changes and monthly earnings estimate shifts [6] - The VGM Score combines all three Style Scores, providing a comprehensive view of stocks with attractive value, growth forecasts, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - There are over 800 stocks rated 1 or 2, making it essential for investors to select those with high Style Scores for optimal success [10] Stock Highlight: KLA Corporation - KLA Corporation, based in San Jose, CA, specializes in process diagnostics and control equipment for semiconductor manufacturing [12] - KLA holds a 2 (Buy) rating on the Zacks Rank, with a VGM Score of B and a Momentum Style Score of A, having seen a 7.2% increase in shares over the past month [13] - Recent upward revisions in earnings estimates by seven analysts for fiscal 2025 have raised the Zacks Consensus Estimate by 0.88to0.88 to 31.59 per share, with an average earnings surprise of 6.4% [13][14]