Onto Innovation (ONTO) closed the most recent trading day at $157.86, moving -1.34% from the previous trading session. This change lagged the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.
Coming into today, shares of the maker of semiconductor manufacturing equipment had gained 3.9% in the past month. In that same time, the Computer and Technology sector gained 0.14%, while the S&P 500 gained 0.79%.
The upcoming earnings release of Onto Innovation will be of great interest to investors. The company is forecasted to report an EPS of $1.27, showcasing a 15.89% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $266.11 million, indicating a 0.82% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.96 per share and a revenue of $1 billion, representing changes of -7.12% and +1.74%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Onto Innovation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Onto Innovation currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Onto Innovation has a Forward P/E ratio of 32.26 right now. This denotes no noticeable deviation relative to the industry average Forward P/E of 32.26.
It's also important to note that ONTO currently trades at a PEG ratio of 1.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Nanotechnology industry held an average PEG ratio of 1.08.
The Nanotechnology industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 8, putting it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Onto Innovation Inc. (ONTO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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