KLA CORP (NASDAQ:KLAC) – A Strong Growth Candidate Meeting Minervini’s Criteria

KLA CORP (NASDAQ:KLAC) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The company, a leader in semiconductor process control solutions, demonstrates both technical strength and accelerating fundamentals, making it a compelling candidate for growth-focused investors.

Technical Strength: Meeting Minervini’s Trend Template

KLAC satisfies the key technical criteria outlined in Minervini’s strategy:

• Price Above Key Moving Averages: The stock is trading at $937.08, well above its 50-day ($837.03), 150-day ($741.58), and 200-day ($728.77) moving averages.
• Upward-Trending Averages: The 50-day, 150-day, and 200-day MAs are all rising, confirming sustained upward momentum.
• Strong Relative Strength: With a ChartMill Relative Strength (CRS) of 87.15, KLAC outperforms 87% of the market.
• Near 52-Week High: The stock is trading within 1% of its 52-week high ($942.97) and is up 78% from its 52-week low ($551.33).

These factors indicate KLAC is in a strong Stage 2 uptrend, a key requirement for Minervini’s strategy.

Fundamental Growth Drivers

KLAC’s fundamentals support its high-growth momentum status:

• Earnings Growth:
  • Quarterly EPS growth of 59.9% (YoY), with accelerating trends in recent quarters (33.1%, 27.7%, and 22.2% in prior quarters).
  • TTM EPS growth of 35.4%, reflecting strong profitability.
• Revenue Expansion:
  • Quarterly revenue growth of 29.8% (YoY), with consistent beats in estimates (4 EPS beats in the last 4 quarters).
  • TTM revenue growth of 20.3%, signaling robust demand.
• Profit Margins:
  • Latest quarterly profit margin of 35.5%, up from 26.8% in the prior quarter, indicating improving efficiency.

Technical Outlook

According to ChartMill’s technical report, KLAC has a strong rating of 9/10, supported by:

• A long-term and short-term uptrend.
• Recent breakout near 52-week highs.
• Key support levels at $906.51-$908.75 and $836.29-$849.99.

The setup quality is rated 4/10, suggesting investors may want to wait for a consolidation before entering.

For a deeper technical breakdown, review the full technical report here.

Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.