Onto Innovation (ONTO) closed the latest trading day at $114.21, indicating a +1.84% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 2.51%. Meanwhile, the Dow gained 2.66%, and the Nasdaq, a tech-heavy index, added 2.71%.
Shares of the maker of semiconductor manufacturing equipment have depreciated by 20.42% over the course of the past month, underperforming the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 8.86%.
The investment community will be paying close attention to the earnings performance of Onto Innovation in its upcoming release. The company is slated to reveal its earnings on May 8, 2025. On that day, Onto Innovation is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 24.58%. Meanwhile, our latest consensus estimate is calling for revenue of $265.94 million, up 16.21% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.09 per share and a revenue of $1.07 billion, demonstrating changes of +14.04% and +8.62%, respectively, from the preceding 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.44% decrease. Right now, Onto Innovation possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Onto Innovation is presently trading at a Forward P/E ratio of 18.43. This represents no noticeable deviation compared to its industry's average Forward P/E of 18.43.
Also, we should mention that ONTO has a PEG ratio of 0.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Nanotechnology stocks are, on average, holding a PEG ratio of 0.61 based on yesterday's closing prices.
The Nanotechnology industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 36% of all industries, numbering over 250.
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.
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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