KLA-Tencor (KLAC) Stock Reaches a 52-Week High of $108.28

Shares of KLA-Tencor Corporation KLAC hit a new 52-week high of $108.28 on Jun 6, eventually closing at $107.80. The stock has returned 51.2% in the last one year and has added approximately 38.6% year to date.

Also, the company's shares outperformed the Zacks Semiconductor Equipment - Wafer Fabricationindustry in the last two years. While the stock returned 92.9%, the industry gained only 77.4%.

Notably, the company has witnessed a 4.3% jump in its share price following its encouraging third-quarter fiscal 2017 results on Apr 27.

Currently, KLA-Tencorsports a Zacks Rank #1 (Strong Buy). Notably, the company has a market cap of $16.9 billion. Average volume of shares traded in the last three months was roughly 1,128K.

Share Price Drivers

KLA is one of the leading suppliers of inspection and metrology products and services.

The company reported strong fiscal third-quarter results wherein both earnings and revenues exceeded the Zacks Consensus Estimate. Non-GAAP earnings of $1.62 per share were up a massive 43.8% from the year-ago quarter. Revenues of $913.8 million were up 4.2% sequentially and 28.4% from the year-ago quarter. The increase was due to strong customer acceptance for the company's new products.

Also, KLA provided strong guidance for the upcoming quarter. For the fourth-quarter fiscal 2017, KLA expects shipments of $890–$970 million. Quarterly revenues are expected between $885 million and $945 million, while the Zacks Consensus Estimate stands at 920.1 million. Non-GAAP EPS is expected in the range of $1.46–$1.66, while the Zacks Consensus Estimate is pegged at $1.59.

Also, KLA has an impressive record of returning cash to shareholders through regular dividends payouts. In the third quarter, the company returned $85.5 million through cash dividends to shareholders.

Moreover, KLA-Tencor continues to focus on innovation and is expected to benefit from its new product-development strategy. KLA has introduced a number of new front-end defect inspection products that are expected to augment its existing portfolio.

Additionally, KLA delivered an average positive earnings surprise of nearly 11.55% in the trailing four quarters. The company's comprehensive product line, cost reduction initiatives, continued innovation and strong long-term growth potential, position it well.

Other Stocks to Consider

Some stocks worth considering in the broader technology sector include Autobytel Inc. ABTL, Mercadolibre, Inc. MELI and PetMed Express, Inc. PETS, each carrying a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

Autobytel Inc. delivered a positive earnings surprise of 41.98%, on average, in the trailing four quarters.

Mercadolibre, Inc. delivered a positive earnings surprise of 26.74%, on average, in the trailing four quarters.

PetMed Express, Inc. delivered a positive earnings surprise of 9.32%, on average, in the trailing four quarters.

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