KLAC Stock Surges 9.2% With A 6-day Winning Spree On Jefferies Upgrade
KLA (KLAC) stock hit day 6-day winning streak, with cumulative gains over this period amounting to a 9.2%. The company market cap has surged by about $14 Bil over the last 6 days, and currently stands at $169 Bil.
The stock has YTD (year-to-date) return of 104.8% compared to 17.8% for S&P 500. This calls for re-evaluation of stock’s valuation, and find out whether this is an opportunity, or a trap.
What Triggered The Rally?
| Catalyst | Details | Impact | Date |
|---|---|---|---|
| Multiple Analyst Upgrades & Price Target Hikes |
|
|
2025-12-18 |
| Positive Semiconductor Sector Forecast |
|
|
2025-12-16 |
Opportunity or Trap?
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Below is our take on valuation.
There is not much to fear in KLAC stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive (For details, see Buy or Sell KLAC).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for KLAC stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | KLAC | S&P 500 |
|---|---|---|
| 1D | 0.2% | -0.0% |
| 6D (Current Streak) | 9.2% | 3.1% |
| 1M (21D) | 11.7% | 2.4% |
| 3M (63D) | 20.4% | 4.3% |
| YTD 2025 | 104.8% | 17.8% |
| 2024 | 9.4% | 23.3% |
| 2023 | 56.0% | 24.2% |
| 2022 | -11.2% | -19.4% |
However, big gains can follow sharp reversals – but how has KLAC behaved after prior drops? See KLAC Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 83 S&P constituents with 3 days or more of consecutive gains and 28 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 21 | 27 |
| 4D | 25 | 1 |
| 5D | 9 | 0 |
| 6D | 20 | 0 |
| 7D or more | 8 | 0 |
| Total >=3 D | 83 | 28 |
Key Financials for KLA (KLAC)
Last 2 Fiscal Years:
| Metric | FY2024 | FY2025 |
|---|---|---|
| Revenues | $9.8 Bil | $12.2 Bil |
| Operating Income | $3.6 Bil | $5.0 Bil |
| Net Income | $2.8 Bil | $4.1 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ4 | 2026 FQ1 |
|---|---|---|
| Revenues | $3.2 Bil | $3.2 Bil |
| Operating Income | $1.4 Bil | $1.3 Bil |
| Net Income | $1.2 Bil | $1.1 Bil |
While KLAC stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.