In the latest trading session, Onto Innovation (ONTO) closed at $321.44, marking a +1.39% move from the previous day. This move outpaced the S&P 500's daily gain of 0.42%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.29%.
Heading into today, shares of the maker of semiconductor manufacturing equipment had gained 4.44% over the past month, outpacing the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 2.2%.
Market participants will be closely following the financial results of Onto Innovation in its upcoming release. The company's upcoming EPS is projected at $1.68, signifying a 34.40% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $325.6 million, indicating a 28.39% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.14 per share and a revenue of $1.33 billion, indicating changes of +44.53% and +32.56%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Onto Innovation. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.41% upward. As of now, Onto Innovation holds a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Onto Innovation is currently trading at a Forward P/E ratio of 44.42. This represents no noticeable deviation compared to its industry average Forward P/E of 44.42.
It's also important to note that ONTO currently trades at a PEG ratio of 1.29. 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 was holding an average PEG ratio of 1.29 at yesterday's closing price.
The Nanotechnology industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% of all 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.
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 Report
This article originally published on Zacks Investment Research (zacks.com).