KLA Tencor dips -0.6 percent despite market ascent
 | By Vlad Skutelnik | Macroaxis Story |
In this story I am going to address all ongoing KLA Tencor shareholders. I will look into why despite ongoing dip, the longer-term fundamental drivers of the firm are still sound. KLA Tencor elasticity to market is moves indifferently to market moves. The returns on investing in KLA Tencor and the market returns of the last few months appear uncorrelated. Sound fundamental drivers of the firm may indicate signs of shorter-term price drift for shareholders of the firm. We found twenty-nine available financial indicators for KLA Tencor which can be compared to its peers in the sector. To make sure the equity is not overpriced, please verify all KLA Tencor Corporation fundamentals including its Current Valuation, Shares Owned by Institutions and the relationship between Operating Margin and Shares Owned by Insiders . Use KLA Tencor to protect your portfolios against small markets fluctuations. The stock experiences moderate downward daily trend and can be a good diversifier. Check odds of KLA Tencor to be traded at €100.7 in 30 days.
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Reviewed by Rifka Kats
KLA Tencor has beta of 1.14. KLA Tencor returns are very sensitive to returns on the market. As market goes up or down, KLA Tencor is expected to follow. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about €1.25 per share. The company has Profit Margin (PM) of 29.83 % which can be a sign that it executes well on its competitive strategies and has a good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 35.2 % which suggests for every 100 dollars of sales it generated a net operating income of 0.35.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as KLA. Your research has to be compared to or analyzed against KLA's peers to derive any actionable benefits. When done correctly, KLA's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in KLA Corporation.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of KLA Corporation. In general, sophisticated investors focus on analyzing KLA stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build KLA's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of KLA's intrinsic value. In addition to deriving basic predictive indicators for KLA, many experienced traders also check how macroeconomic factors affect KLA price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of KLA's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is KLA's Liquidity
KLA financial leverage refers to using borrowed capital as a funding source to finance KLA Corporation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. KLA financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to KLA's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of KLA's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between KLA's total debt and its cash.
Breaking it down a bit more
The big decline in price over the last few months for KLA Tencor Corporationmay raise some interest from investors. The Stock closed today at a share price of 102.76 on 72.000 in trading volume. The company directors and management failed to add value to investors and positioning the firm components to exploit market volatility in May. However, diversifying your holdings with KLA Tencor or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.4722. The current volatility is consistent with the ongoing market swings in May 2019 as well as with KLA Tencor unsystematic, company specific events. KLA Tencor preserves 2.59b of gross profit. KLA Tencor is trading at 102.76. This is 0.6 percent decrease. Today highest was 102.76. Taking everything into account, our final 'Buy/Hold/Sell' recommendation on the firm is Hold. We believe KLA Tencor is fairly valued with below average odds of distress for the next two years.
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