Onto Innovation (ONTO) closed at $202.21 in the latest trading session, marking a +2.42% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1%.
Coming into today, shares of the maker of semiconductor manufacturing equipment had gained 28% in the past month. In that same time, the Computer and Technology sector gained 2.62%, while the S&P 500 gained 2.06%.
The investment community will be closely monitoring the performance of Onto Innovation in its forthcoming earnings report. The company is predicted to post an EPS of $1.27, indicating a 15.89% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $266.11 million, indicating a 0.82% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.96 per share and a revenue of $1 billion, demonstrating changes of -7.12% and 0%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Onto Innovation. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Onto Innovation currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Onto Innovation currently has a Forward P/E ratio of 33.23. For comparison, its industry has an average Forward P/E of 33.23, which means Onto Innovation is trading at no noticeable deviation to the group.
We can also see that ONTO currently has a PEG ratio of 1.11. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Nanotechnology industry had an average PEG ratio of 1.11 as trading concluded yesterday.
The Nanotechnology industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 1, putting it in the top 1% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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