KLA-Tencor Corporation Stock Buy Recommendation Reiterated (KLAC)
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- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 49.50% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, KLAC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Although KLAC's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 3.78, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for KLA-TENCOR CORP is rather high; currently it is at 62.10%. Regardless of KLAC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KLAC's net profit margin of 27.80% compares favorably to the industry average.
- Along with the stagnant revenue growth, the company underperformed against the industry average of 13.9%. Since the same quarter one year prior, revenues have remained constant. The stagnant revenue growth has not kept the company from increasing earnings per share.
--Written by a member of TheStreet Ratings Staff.
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