KLA Corporation (KLAC) Hit a 52 Week High, Can the Run Continue?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 30, 2025, KLA reported EPS of $8.41 versus consensus estimate of $8.06.
For the current fiscal year, KLA is expected to post earnings of $32.46 per share on $12.05 billion in revenues. This represents a 36.73% change in EPS on a 22.77% change in revenues. For the next fiscal year, the company is expected to earn $33.04 per share on $12.34 billion in revenues. This represents a year-over-year change of 1.8% and 2.4%, respectively.
Though KLA has recently hit a 52-week high, what is next for KLA? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
KLA has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 27.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.7X. On a trailing cash flow basis, the stock currently trades at 30.6X versus its peer group's average of 11.6X. Additionally, the stock has a PEG ratio of 1.7. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, KLA currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if KLA fits the bill. Thus, it seems as though KLA shares could still be poised for more gains ahead.
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