In the latest close session, Onto Innovation (ONTO) was down 1.74% at $184.00. The stock's change was less than the S&P 500's daily loss of 0.34%. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the maker of semiconductor manufacturing equipment had gained 15.16% outpaced the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
Investors will be eagerly watching for the performance of Onto Innovation in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.27, reflecting a 15.89% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $266.11 million, showing a 0.82% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.96 per share and a revenue of $1 billion, indicating changes of -7.12% and 0%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Onto Innovation. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Onto Innovation currently has a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Onto Innovation is presently trading at a Forward P/E ratio of 31.51. This denotes no noticeable deviation relative to the industry average Forward P/E of 31.51.
One should further note that ONTO currently holds a PEG ratio of 1.05. 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. The Nanotechnology was holding an average PEG ratio of 1.05 at yesterday's closing price.
The Nanotechnology industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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