There’s Reason For Concern Over KLA Corporation’s (NASDAQ:KLAC) Massive 29% Price Jump
KLA Corporation (NASDAQ:KLAC) shareholders would be excited to see that the share price has had a great month, posting a 29% gain and recovering from prior weakness. The last 30 days bring the annual gain to a very sharp 45%.
Since its price has surged higher, KLA’s price-to-earnings (or “P/E”) ratio of 36.6x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 19x and even P/E’s below 11x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.
