Onto Innovation (ONTO) ended the recent trading session at $252.61, demonstrating a -1.76% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.02%. Elsewhere, the Dow saw an upswing of 0.63%, while the tech-heavy Nasdaq appreciated by 1.23%.
The maker of semiconductor manufacturing equipment's stock has climbed by 35.67% in the past month, exceeding the Computer and Technology sector's gain of 1.17% and the S&P 500's gain of 0.63%.
Investors will be eagerly watching for the performance of Onto Innovation in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.32, marking a 12.58% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $280.67 million, up 5.27% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.41 per share and a revenue of $1.22 billion, signifying shifts of +29.76% and +21.22%, respectively, from the last 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.57% higher within the past month. Currently, Onto Innovation is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, Onto Innovation is holding a Forward P/E ratio of 40.14. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 40.14.
We can additionally observe that ONTO currently boasts a PEG ratio of 1.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Nanotechnology was holding an average PEG ratio of 1.34 at yesterday's closing price.
The Nanotechnology industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 9, placing it within the top 4% of over 250 industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Onto Innovation Inc. (ONTO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).