KLA
This is a strong, large-cap play for investors looking for exposure to semiconductor capital equipment. KLA Corp. (NASDAQ: KLAC) designs, manufactures and markets process control and yield management solutions worldwide.
It offers chip manufacturing products, such as front-end defect inspection tools, defect review systems, advanced packaging process control systems, metrology solutions, in-situ process monitoring products and lithography software. Its wafer manufacturing products comprise surface and defect inspection, wafer geometry and nanotopography metrology, and data management, and its reticle manufacturing products include defect inspection and pattern placement metrology products.
The company also provides light emitting diode (LED), power device and compound semiconductor manufacturing products, consisting of patterned wafer inspection, defect inspection, surface metrology and data management products. It offers thin-film head metrology and inspection, virtual lithography, in-situ process monitoring, transparent and metal substrate inspection and data management products for data storage media/head manufacturing, as well as stylus and optical profiling and optical inspection products for microelectromechanical systems manufacturing, and products for general purpose/lab applications.
Shareholders currently receive a 1.08% dividend. The expected dividend hike is to $1.45 per share from $1.30. J.P. Morgan’s $560 price objective on KLA stock is well above the $521.47 consensus target and Friday’s close at $496.47.
Martin Marietta Materials
This company remains a favorite across Wall Street, especially while infrastructure concerns are ongoing. Martin Marietta Materials Inc. (NYSE: MLM) is a natural resource-based building materials company, supplying aggregates and heavy-side building materials to the construction industry in the United States and internationally.
The company offers crushed stone, sand and gravel products; ready mixed concrete and asphalt; paving products and services; and Portland and specialty cement used in infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility and environmental industries.
Martin Marietta also manufactures and markets magnesia-based chemical products for industrial, agricultural and environmental applications, as well as dolomitic lime primarily for customers in the steel and mining industries. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production and other environmental applications.
The company remains upbeat not just on 2021 construction demand, but also noted many states with its greatest exposure were well positioned for housing and public non-residential construction growth.
The current dividend yield is 0.58%, but the $0.66 per share payout is expected to rise to $0.70. Martin Marietta Materials stock $550 price target at Truist Financial. The consensus target is $504.81, and shares closed at $455.85 on Friday.
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