KLAC Should I Buy
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KLA Corp (KLAC) is not a strong buy at the moment for a beginner investor with a long-term horizon. While the company has strong financial performance and positive long-term growth prospects, current technical indicators and trading sentiment suggest a neutral to slightly bearish short-term outlook. Additionally, increased insider and hedge fund selling, along with mixed analyst sentiment, indicate caution. For a long-term investor, waiting for a more favorable entry point or clearer positive signals might be prudent.
The MACD is negative and contracting, indicating weak momentum. RSI is neutral at 51.521, suggesting no clear overbought or oversold conditions. Moving averages are converging, showing no strong trend direction. The stock is trading near a pivot level of 1425.896, with resistance at 1540.481 and support at 1311.311, suggesting limited immediate upside.
Strong financial performance in Q2 2026, with revenue up 7.16% YoY, net income up 38.95% YoY, and EPS up 40.91% YoY.
Stable dividend payout of $1.90 per share, reflecting strong cash flow.
Positive long-term growth potential in AI-driven semiconductor demand.
Increased insider and hedge fund selling, with insider selling up 148.90% and hedge fund selling up 242.07%.
Mixed analyst sentiment, with some firms expressing concerns about near-term growth and valuation.
Weak technical indicators and bearish options sentiment.
KLA Corp reported strong Q2 2026 financial results, with revenue increasing 7.16% YoY to $3.297 billion, net income up 38.95% YoY to $1.145 billion, and EPS up 40.91% YoY to $8.68. However, gross margin slightly declined by 0.47% YoY to 61.45%.
Mixed analyst sentiment. Several firms raised price targets (e.g., Cantor Fitzgerald to $1,850, Oppenheimer to $1,800, Citi to $1,800) and maintain positive ratings, citing long-term growth potential. However, others like Goldman Sachs and Deutsche Bank express concerns about near-term growth and valuation, with Neutral and Hold ratings.
