KLAC - KLA Corporation's Premium Multiple Is Deserved Technically Strong Into Earnings
2024-04-11 23:58:56 ET
Summary
- Semiconductor stocks have stalled since reaching an all-time high in March, but are still outperforming the S&P 500 year over year.
- I have a buy rating on KLAC as I see the stock with a low-enough valuation and positive technical indicators ahead of its earnings report on April 26.
- With healthy margins and EPS growth ahead, I highlight key price levels to monitor on the chart.
Semiconductor stocks have stalled out since notching an all-time high back on March 8. Shares of the VanEck Vectors Semiconductor ETF (SMH) spiked to near $240 on high volume before falling sharply during the trading day, closing near the lows of the session and under $225. It had the hallmarks of what technicians call a “blow-off top.” Then, earlier this month, SMH printed a bearish engulfing pattern (April 4). These are important clues for an industry that has grown to become a material chunk of the S&P 500. It bears watching as we head into the Q1 earnings season – the chipmakers don’t report until late April and into May, however. ...
KLA Corporation's Premium Multiple Is Deserved, Technically Strong Into Earnings