Onto Innovation (ONTO) closed the most recent trading day at $116.00, moving -3.8% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.1% for the day. Elsewhere, the Dow saw an upswing of 0.57%, while the tech-heavy Nasdaq depreciated by 0.33%.
The maker of semiconductor manufacturing equipment's stock has climbed by 12.11% in the past month, exceeding the Computer and Technology sector's gain of 5.94% and the S&P 500's gain of 2.57%.
The investment community will be paying close attention to the earnings performance of Onto Innovation in its upcoming release. The company is expected to report EPS of $0.89, down 33.58% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $218.24 million, down 13.47% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.92 per share and revenue of $992.52 million, which would represent changes of -7.87% and +0.53%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Onto Innovation. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 1.11% lower within the past month. Onto Innovation is currently a Zacks Rank #4 (Sell).
In terms of valuation, Onto Innovation is currently trading at a Forward P/E ratio of 24.52. Its industry sports an average Forward P/E of 24.52, so one might conclude that Onto Innovation is trading at no noticeable deviation comparatively.
Investors should also note that ONTO has a PEG ratio of 0.82 right now. 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. Nanotechnology stocks are, on average, holding a PEG ratio of 0.82 based on yesterday's closing prices.
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.
