KLA-Tencor Corporation (NasdaqGS:KLAC) With Expected Sales Growth of 12.4750% is a 0.0252 Target Weight Reasonable?

KLA-Tencor Corporation (NasdaqGS:KLAC) of the Technology Hardware & Equipment sector might have recently popped up on investor’s radars as the 14502355 market cap company based out of United States of America recently closed at 94.74.  The stock has seen year over year sales growth of 12.4750% giving it a traded value of $157114.

Investors may be intent on creating unique strategies when approaching the equity markets. Individuals with longer-term mindsets may have completely different strategies than those who trade in the short-term. Whatever class they fall under, investors may have to decide how aggressive they want to be in order to capitalize on these strategies. Navigating the bull market may make things a bit easier for some and much harder for others. Many investors will set their sights on dips and corrections. This may prove to be a successful strategy, but this may also create many missed opportunities. Keeping track of key economic data along with market trends and earnings information typically seems to be a boon to any strategy. Highly active traders may keep close watch after the markets have a sleepy session or two. Investors staying the course might actually be relieved when activity cools a bit. 

So how has KLA-Tencor Corporation (NasdaqGS:KLAC) performed in terms of returns?  The ROIC quality score stands at 3.294906 whilet he actual return on invested capital holds at  0.789853.  KLA-Tencor Corporation’s book to market ratio is at 0.108077 while the book to market mean difference is -0.17412. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued.

In glancing at some key ratios we note that the Piotroski F-Score is at 7 (1 to 10 scale) and the ERP5 rank is at 3062. The Q.I. Value of KLA-Tencor Corporation (NasdaqGS:KLAC) currently reads 18 on the Quant scale. The Free Cash Flow score of 1.116518 is also swinging some momentum at investors. The United States of America based firm is currently valued at 157114.

Some other notable ratios include the Accrual Ratio of -0.488521, the Altman Z score of 4.739664, a Montier C-Score of 3 and a Value Composite rank of 47.


In looking at some Debt ratios, KLA-Tencor Corporation (NasdaqGS:KLAC) currently has a debt to equity ratio of 1.4278 and a Free Cash Flow to Debt ratio of 0.519847. This ratio gives insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at -0.33508. This ratio reveals how easily a firm is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. KLA-Tencor Corporation’s ND to MV current stands at -0.037402. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

With most major indexes showing strength, it is safe to assume that many investors may have their heads in the clouds. With many stocks frequently hitting new milestone highs, investors may be scrambling to make sure that they aren’t missing out on possible returns. Maybe some stocks have been doing well, but others not in the portfolio have been doing much better. There is rarely any substitute for hard work and dedication. Investors may get complacent with stocks that they are familiar with. Branching out into uncharted waters may help broaden the horizon and start the gears grinding for new trading ideas. Traders and investors will no doubt be closely monitoring the markets as we move into the second half of the year. It remains to be seen whether optimism or pessimism will rule going in to the next round of quarterly earnings reporting.

KLA-Tencor Corporation (NasdaqGS:KLAC) are showing an adjusted slope average of the past 125 and 250 days of -9.14355.  The Adjusted Slope 125/250d indicator is equal to the average annualized exponential regression slope, over the past 125 and 250 trading days, multiplied by the coefficient of determination (R2).  The purpose of this calculation is to provide a longer term average adjusted slope value that levels out large share price movements by using the average. This indicator is useful in helping find stocks that have been on a smooth upward trend over the past 6 months to a year.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.252496 for KLA-Tencor Corporation (NasdaqGS:KLAC).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

Investors may be trying to decide if the current market environment remains bullish. It can be extremely difficult to decide when to sell, especially when data seems positive and most signs are pointing higher. Jumping in to buy stocks on a pullback may seem like a good idea, but following specific sectors may become increasingly more important. Following long-term trends may help the investor see the bigger picture of what has been going on with a specific stock or sector. Deciding to sell a winner after a big run can be tempting, but knowing the underlying causes for the run may help identify if there may indeed be more room for gains. Avoiding common investing pitfalls may take many years to master, but it may end up determining long-term success.

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