<div id="readability-page-1">Money Markets Why KLA Stock Could Be A Buy  ByTrefis Team ,  Contributor.  Forbes contributors publish independent expert analyses and insights. Building a platform to do the job of 1 million analysts for  Great Speculations Follow Author Nov 21, 2025, 09:46am EST Share Save Comment We believe KLA (KLAC) stock could be a promising investment opportunity. Why? Because it offers strong margins, a low-debt capital structure, and strong momentum – with potential for growth as, the stock is significantly below its 52-week-high. Also, see Inside the Bitcoin Meltdown: How Two Big Institutions Triggered The Crash.  UKRAINE - 2024/01/31: In this photo illustration, the KLA Corporation logo is seen on a smartphone and in the background. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Several Factors Support KLAC Stock  KLAC has risen 76% thus far this year, but there is still potential for more growth due to its solid fundamentals and the fact that it is 11% below its 52-week-high. In fact, the stock just declined by close to 6% in Thursday’s trading, following the broader tech sell off.  KLA’s recent performance confirms these strengths, propelled by strong demand for advanced packaging and AI infrastructure, with forecast revenue anticipated to surpass $925 million in 2025, representing a 70% annual increase. The September 2025 quarter achieved a 43% operating margin from a favorable mix of products and manufacturing efficiencies, while the service sector grew by 16% year-over-year to reach $745 million.  Even though a slowdown in overall revenue growth is projected for the next 12 months and export controls are impacting revenue from China, KLA's impressive free cash flow of $3.9 billion over the past year backs its low-debt capital structure. The stock's year-to-date return of over 80% further emphasizes its strong momentum.  And Its Fundamentals Are Strong  Long-Term Profitability: Approximately 34.0% operating cash flow margin and 38.9% operating margin over the last 3-year average.  Strong Momentum: Currently in the top 10th percentile of stocks concerning “trend strength” – our proprietary momentum metric.  Revenue Growth: KLA experienced revenue growth of 22.1% LTM and 8.7% over the last 3-year average, but this should not be viewed strictly as a growth narrative.  Room For Growth: In spite of its momentum, KLAC stock trades 11% below its 52-week high.  Below is a quick comparison of KLAC's fundamentals against S&amp;P medians.  MORE FOR YOU KLAC Trefis  But Be Cautious Of The Risks  While KLAC stock may present a strong investment opportunity, it is beneficial to consider a stock’s history of drawdowns. KLAC experienced a decline of approximately 73% during the Dot-Com crash and around 75% in the Global Financial Crisis. The 2018 correction and COVID sell-off resulted in dips of about 32% and 37%, respectively. Even the recent inflation shock saw a drop exceeding 40%. Indeed, the company possesses solid fundamentals, yet history demonstrates that in times of market turmoil, significant pullbacks are essentially standard. Additionally, the risk is not confined to major market crashes. Stocks decline even in favorable market conditions – consider events such as earnings announcements, business updates, and outlook revisions. Check KLAC Dip Buyer Analyses to view how the stock has rebounded from steep declines in the past.  For more information, see Buy or Sell KLAC Stock .  KLAC Is Just One Of Several Such Stocks  You may also want to consider:  Lam Research (LRCX)  Newmont (NEM)  Ubiquiti (UI)  We selected these stocks based on the following criteria:  Market cap greater than $2 billion  High operating or cash flow margins  No instances of significant revenue decline in the past 5 years  Low-debt capital structure  Strong momentum  A portfolio that was initiated on 12/31/2016 with stocks meeting the above criteria would have realized the following performance:  Average 12-month forward returns nearing 15%  12-month win rate (the percentage of picks yielding positive returns) of roughly 60%  A Multi-Asset Portfolio Outperforms Stock Selection Alone  Markets behave differently, but a diversified mix of assets alleviates volatility. A multi-asset portfolio keeps you invested while mitigating the impact of abrupt declines in any particular sector.  The asset allocation strategy of Trefis’ Boston-based wealth management affiliate generated positive returns during the 2008-09 period when the S&amp;P lost over 40%. Our partner’s strategy now incorporates Trefis’ High Quality Portfolio , which has a history of comfortably outperforming its benchmark including all three – the S&amp;P 500, S&amp;P mid-cap, and Russell 2000 indices.  Editorial Standards Reprints &amp; Permissions LOADING VIDEO PLAYER... FORBES’ FEATURED Video</div>

KLAC

<p>KLA (KLAC) stock is considered a promising investment due to strong margins, low-debt capital structure, and growth potential, despite being 11% below its 52-week high. The stock has risen 76% this year, driven by demand for advanced packaging and AI infrastructure. However, historical drawdowns during market turmoil and export controls impacting revenue from China pose risks. A diversified portfolio is recommended to mitigate volatility. KLA's fundamentals include a 34% operating cash flow margin and 38.9% operating margin over the last three years.</p>