Onto Innovation (ONTO) closed the most recent trading day at $241.41, moving -8.4% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.11% for the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1.88%.
The maker of semiconductor manufacturing equipment's stock has climbed by 7.94% in the past month, exceeding the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
Analysts and investors alike will be keeping a close eye on the performance of Onto Innovation in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.27, marking a 146.74% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $390.66 million, up 79.05% from the prior-year quarter.
ONTO's full-year Zacks Consensus Estimates are calling for earnings of $8.04 per share and revenue of $1.42 billion. These results would represent year-over-year changes of +62.75% and +41.22%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Onto Innovation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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, the Zacks Consensus EPS estimate has remained steady. Onto Innovation is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Onto Innovation is holding a Forward P/E ratio of 32.78. This expresses no noticeable deviation compared to the average Forward P/E of 32.78 of its industry.
It's also important to note that ONTO currently trades at a PEG ratio of 0.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Nanotechnology industry stood at 0.86 at the close of the market yesterday.
The Nanotechnology industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 6, finds itself in the top 3% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Onto Innovation Inc. (ONTO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).