In the latest trading session, Onto Innovation (ONTO) closed at $106.04, marking a +1.76% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.3%. Elsewhere, the Dow saw a downswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.03%.
Prior to today's trading, shares of the maker of semiconductor manufacturing equipment had lost 5.44% lagged the Computer and Technology sector's gain of 3.1% and the S&P 500's gain of 2.09%.
The upcoming earnings release of Onto Innovation will be of great interest to investors. The company's upcoming EPS is projected at $0.89, signifying a 33.58% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $218.24 million, down 13.47% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.92 per share and a revenue of $992.52 million, representing changes of -7.87% and +0.53%, respectively, from the prior year.
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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.11% decrease. At present, Onto Innovation boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Onto Innovation is presently being traded at a Forward P/E ratio of 21.19. Its industry sports an average Forward P/E of 21.08, so one might conclude that Onto Innovation is trading at a premium comparatively.
One should further note that ONTO currently holds a PEG ratio of 0.71. 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. By the end of yesterday's trading, the Nanotechnology industry had an average PEG ratio of 0.7.
The Nanotechnology industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 233, placing it within the bottom 6% of over 250 industries.
