Kulicke and Soffa (KLIC) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

Kulicke and Soffa (KLIC) closed at $53.79 in the latest trading session, marking a -0.81% move from the prior day. This change lagged the S&P 500's daily loss of 0.02%.

Prior to today's trading, shares of the semiconductor equipment maker had gained 15.78% over the past month. This has outpaced the Computer and Technology sector's gain of 7.32% and the S&P 500's gain of 6.61% in that time.

KLIC will be looking to display strength as it nears its next earnings release. In that report, analysts expect KLIC to post earnings of $0.91 per share. This would mark year-over-year growth of 313.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $300 million, up 99.02% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.28 per share and revenue of $1.11 billion. These totals would mark changes of +245.26% and +78.12%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for KLIC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KLIC is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, KLIC is holding a Forward P/E ratio of 16.56. This valuation marks a discount compared to its industry's average Forward P/E of 20.56.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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