Onto Innovation (ONTO) closed at $98.88 in the latest trading session, marking a -1.36% move from the prior day. This change lagged the S&P 500's daily gain of 0.52%. Elsewhere, the Dow saw an upswing of 1%, while the tech-heavy Nasdaq appreciated by 0.52%.
The maker of semiconductor manufacturing equipment's shares have seen an increase of 5.47% over the last month, not keeping up with the Computer and Technology sector's gain of 9.55% and the S&P 500's gain of 5.95%.
The investment community will be paying close attention to the earnings performance of Onto Innovation in its upcoming release. The company's upcoming EPS is projected at $1.27, signifying a 3.79% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $249.75 million, up 3.06% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.14 per share and revenue of $992.6 million. These totals would mark changes of -3.75% and +0.53%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Onto Innovation. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, there's been a 3.36% fall in the Zacks Consensus EPS estimate. Onto Innovation currently has a Zacks Rank of #4 (Sell).
Investors should also note Onto Innovation's current valuation metrics, including its Forward P/E ratio of 19.52. Its industry sports an average Forward P/E of 19.52, so one might conclude that Onto Innovation is trading at no noticeable deviation comparatively.
One should further note that ONTO currently holds a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Nanotechnology industry currently had an average PEG ratio of 0.65 as of yesterday's close.
The Nanotechnology industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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