Onto Innovation (ONTO) closed at $122.28 in the latest trading session, marking a -1.96% move from the prior day. This move lagged the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 0.55%.
Heading into today, shares of the maker of semiconductor manufacturing equipment had gained 2.79% over the past month, outpacing the Computer and Technology sector's gain of 0.6% and the S&P 500's loss of 0.84% in that time.
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 May 8, 2025. The company is forecasted to report an EPS of $1.47, showcasing a 24.58% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $264.96 million, up 15.78% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.09 per share and a revenue of $1.07 billion, indicating changes of +14.04% and +8.62%, respectively, from the former year.
Investors should also pay attention to any latest changes in 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.21% lower within the past month. Onto Innovation presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Onto Innovation is currently trading at a Forward P/E ratio of 20.5. This represents no noticeable deviation compared to its industry's average Forward P/E of 20.5.
It is also worth noting that ONTO currently has a PEG ratio of 0.68. 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. Nanotechnology stocks are, on average, holding a PEG ratio of 0.68 based on yesterday's closing prices.
The Nanotechnology industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 240, this industry ranks in the bottom 4% of all industries, numbering over 250.
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.
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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