KLA-Tencor Corp (NASDAQ:KLAC) — This company is the world’s leading maker of yield-monitoring and process-control systems for the semiconductor industry.
More advanced semiconductor technology demands more advanced technology nodes and a need to invest in KLAC’s products.
KLAC is on a June fiscal year, and S&P projects gross margins in the 60% range for FY 2017 and FY 2018.
They expect KLA Tencor to produce earnings per share of $5.88 in FY 2017 and $6.28 in FY 2018 and have a favorable view of KLAC’s future margins compared to its peers.
S&P’s target price of $115 is based on a price-to-earnings ratio of 18.3X FY 2018’s expected operating earnings of $6.28.
KLAC stock beat Q4 2016 estimates, reporting $1.62 vs. an expectation of $1.55. Sales rose 28%, and that too was better than forecast. KLAC pays a dividend of $2.16 for a dividend yield of 2.1%.
The current advance by KLAC stock started in December 2016 in the high $70’s. The stock has regularly established new highs, trading in a narrow bull channel with a spread from low to high averaging 8 to 10 points. However, a recent high late in April penetrated the bullish resistance line, jumping to $104.22.
The current initial support is at the 20-day moving average at about $101 and then the more important major support line at $100. Thus, traders should try to buy KLAC at $100 with an intermediate trading objective of $115 for a proposed gain of 15% by October.
— Sam Collins, Trade of the Day
The Ultimate Marijuana Stock to Go Ballistic in the Next 90
Recreational marijuana is set to become legal in Canada this fall. And the result will send this stock soaring. If you act quickly, before most Americans catch on, you, could turn every $10,000 you invest into $30,000, $40,000, $50,000, or more. This Special Report reveals the No. 1 Marijuana Stock to Buy Now - Read It Here.
Source: Investor Place