In the latest trading session, Onto Innovation (ONTO) closed at $199.94, marking a -1.23% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 1.43%.
Prior to today's trading, shares of the maker of semiconductor manufacturing equipment had gained 13.61% outpaced the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
Analysts and investors alike will be keeping a close eye on the performance of Onto Innovation in its upcoming earnings disclosure. The company's earnings report is set to go public on February 19, 2026. The company is expected to report EPS of $1.27, down 15.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $266.11 million, up 0.82% from the year-ago period.
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.
Investors should also pay attention to any latest changes in analyst estimates for Onto Innovation. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.48% upward. Onto Innovation currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Onto Innovation is presently trading at a Forward P/E ratio of 33.57. For comparison, its industry has an average Forward P/E of 33.57, which means Onto Innovation is trading at no noticeable deviation to the group.
Investors should also note that ONTO has a PEG ratio of 1.12 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Nanotechnology industry had an average PEG ratio of 1.12.
The Nanotechnology industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 3, finds itself in the top 2% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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