The Chaikin Power Gauge RatingTM for KLA-Tencor Corporation $KLAC is bearish due to very negative expert opinions and bearish price/volume activity. Expert opinions about KLAC are very negative which is evidenced by insiders not purchasing significant amounts of stock and pessimistic analyst opinions.
KLAC's financial metrics are neutral. The company yields a high return on shareholder's equity and is carrying too much long term debt. The rank is based on a high long term debt to equity ratio, high return on equity, high price to sales ratio and relatively high cash flow.
KLAC's earnings performance has been neutral. The company experienced superior earnings growth in the past 12 months and has a history of weak earnings growth. The rank is based on poor EPS growth over the past 3-5 years, an upward trend in earnings this year, a relatively low projected P/E ratio and inconsistent earnings over the past 5 years.
Price and volume activity for KLAC is bearish. KLAC is experiencing sustained selling and has a declining price trend. The rank for KLAC is based on its price strength versus the market, negative Chaikin money flow, a negative Chaikin price trend, a positive Chaikin price trend ROC and a decreasing volume trend.
Expert opinions about KLAC are very negative. Insiders are not net buyers of KLAC's stock and analysts's opinions on KLAC have been more negative recently. The rank for KLAC is based on analysts revising earnings estimates upward, insiders not purchasing significant amounts of stock and pessimistic analyst opinions.
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Marc Chaikin is a recognized expert in stock market analysis. He developed computerized stock selection models for professional money managers as well as for individual investors. In addition, he pioneered and created the first real-time analytics workstation for portfolio managers and stock traders; his proprietary analytics are now part of Thomson Reuters’ institutional workstation.
Marc also created the widely-used Chaikin Oscillator and Chaikin Persistency of Money Flow, the basis of Investor’s Business Daily’s Accumulation/Distribution Rating. His indicators’ predictive value has made them de facto standards in most technical analysis software packages.