Onto Innovation (ONTO) closed at $292.67 in the latest trading session, marking a -3.85% move from the prior day. This change lagged the S&P 500's 0.47% loss on the day. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 1.25%.
Coming into today, shares of the maker of semiconductor manufacturing equipment had gained 9.34% in the past month. In that same time, the Computer and Technology sector gained 6.08%, while the S&P 500 gained 1.15%.
Market participants will be closely following the financial results of Onto Innovation in its upcoming release. 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. Alongside, our most recent consensus estimate is anticipating revenue of $390.66 million, indicating a 79.05% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $8.04 per share and a revenue of $1.42 billion, demonstrating changes of +62.75% and +41.22%, respectively, from the preceding year.
Any recent changes to analyst estimates for Onto Innovation should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Onto Innovation holds a Zacks Rank of #2 (Buy).
In terms of valuation, Onto Innovation is currently trading at a Forward P/E ratio of 37.86. This expresses no noticeable deviation compared to the average Forward P/E of 37.86 of its industry.
One should further note that ONTO currently holds a PEG ratio of 1. 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 1 based on yesterday's closing prices.
The Nanotechnology industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 4, this industry ranks in the top 2% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Onto Innovation Inc. (ONTO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).